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interim report January – June 2014

TABLE OF CONTENTSINTERIM REPORT JANUARY – JUNE 2014

INTRODUCTORY NOTES 3

HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)

Interim Management Report 4Consolidated Interim Financial Statements – IFRS 25Responsibility Statement 49

SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED)

IFRS and Non-IFRS Financial Data 50Multi-Quarter Summary 57

ADDITIONAL INFORMATION

Financial Calendar, Investor Services, Addresses, and Imprint 59

INTERIM REPORT JANUARY – JUNE 2014 3

Introductory NotesThis interim group report meets the requirements of German Accounting Standard No. 16“Zwischenberichterstattung” (DRS 16). We prepared the financial data in the Half-Year Financial Statements(Unaudited) section for SAP SE and its subsidiaries in accordance with International Financial ReportingStandards (IFRS). In doing so, we observed the IFRS (including the interpretations by the IFRS InterpretationsCommittee (IFRIC)) both as issued by the International Accounting Standards Board (IASB) and as endorsed bythe European Union (EU). This does not apply to numbers expressly identified as non-IFRS. For additional IFRSand non-IFRS information, see the Supplementary Financial Information (Unaudited) section.

This interim group report complies with the legal requirements in accordance with the German SecuritiesTrading Act (Wertpapierhandelsgesetz, WpHG) for a half-year financial report, and comprises the interimmanagement report, consolidated interim financial statements, and the responsibility statement in accordancewith the German Securities Trading Act, section 37w (2).

This half-year financial report updates our consolidated financial statements 2013, presents significant eventsand transactions of the second quarter 2014 and the first half of 2014, and updates the forward-lookinginformation contained in our Management Report 2013. Both the 2013 consolidated financial statements andthe 2013 Management Report are part of our 2013 Integrated Report which is available atwww.sapintegratedreport.de.

All of the information in this interim group report is unaudited. This means the information has been subjectneither to any audit nor to any review by an independent auditor.

4 INTERIM MANAGEMENT REPORT

INTERIM MANAGEMENT REPORT

GENERAL INFORMATION

Forward-Looking StatementsThis half-year financial report contains forward-looking statements and information based on thebeliefs of, and assumptions made by, ourmanagement using information currently availableto them. Any statements contained in this reportthat are not historical facts are forward-lookingstatements as defined in the U.S. Private SecuritiesLitigation Reform Act of 1995. We have based theseforward-looking statements on our currentexpectations, assumptions, and projections aboutfuture conditions and events. As a result, ourforward-looking statements and information aresubject to uncertainties and risks, many of whichare beyond our control. If one or more of theseuncertainties or risks materializes, or ifmanagement’s underlying assumptions proveincorrect, our actual results could differ materiallyfrom those described in or inferred from ourforward-looking statements and information.

We describe these risks and uncertainties in theRisk and Opportunity Management section,respectively in the there-mentioned sources.

The words “aim,” “anticipate,” “assume,” “believe,”“continue,” “could,” “counting on,” “development,”“is confident,” “estimate,” “expect,” “forecast,””future trends,” “guidance,” “intend,” “may,””might,” “outlook,” “plan,” “project,” “predict,”“seek,” “should,” “strategy,” “want,” “will,” “would,”and similar expressions as they relate to us areintended to identify such forward-lookingstatements. Such statements include, for example,those made in the Operating Results section, theRisk and Opportunity Management section, ourForecast for SAP, and other forward-lookinginformation appearing in other parts of this half-year financial report. To fully consider the factorsthat could affect our future financial results, bothour 2013 Integrated Report and Annual Report onForm 20-F for December 31, 2013, should beconsidered, as well as all of our other filings with theSecurities and Exchange Commission (SEC).Readers are cautioned not to place undue relianceon these forward-looking statements, which speakonly as of the date specified or the date of thisreport. Except where legally required, we undertakeno obligation to publicly update or revise anyforward-looking statements as a result of newinformation that we receive about conditions thatexisted upon issuance of this report, future events,or otherwise unless we are required to do so by law.

Statistical DataThis report includes statistical data about the ITindustry and global economic trends that comesfrom information published by sources includingInternational Data Corporation (IDC), a provider ofmarket information and advisory services for theinformation technology, telecommunications, andconsumer technology markets; the EuropeanCentral Bank (ECB); and the International MonetaryFund (IMF). This type of data represents only theestimates of IDC, ECB, IMF or the other mentionedsources of industry data. SAP does not adopt orendorse any of the statistical information. Inaddition, although we believe that data from thesesources is generally reliable, this type of data isimprecise. We caution readers not to place unduereliance on this data.

All of the information in this report relates to thesituation on June 30, 2014, or the half-year endedon that date unless otherwise stated.

Non-IFRS Financial InformationThis half-year financial report contains non-IFRSmeasures as well as financial data prepared inaccordance with IFRS. We present and discuss thereconciliation of these non-IFRS measures to therespective IFRS measures in the SupplementaryFinancial Information (Unaudited) section. For moreinformation about non-IFRS measures, see our Website www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under “Non-IFRS Measures andEstimates.”


ECONOMY AND THE MARKET

Global Economic TrendsThe European Central Bank reports that globaleconomic growth remained robust overall in thefirst half of 2014. Having decelerated at the start ofthe year, both the industrialized and developingeconomies stabilized in the second quarter.

In the Europe, Middle-East, and Africa (EMEA)region, the ECB reports that gross domesticproduct (GDP) in the euro area improved slightly inthe first six months, though slightly less thanforecast. The economies in Central and EasternEurope continued to recover despite thegeopolitical tension in Ukraine. In the Middle Eastand Africa, economic trends were mixed.

According to the ECB, extreme weather conditionshad a major impact on growth in the Americasregion: GDP fell in the United States in the firstthree months of the year due to the unusually harshwinter but subsequently recovered in the secondquarter. Growth in Latin America remainedgenerally restrained in the first half of the year –with a moderate improvement in Mexico and aslight decline in Brazil.

In the Asia Pacific Japan (APJ) region, the ECB saysthe difference in growth rates between theindustrialized economies and the emergingeconomies narrowed: In Japan, an increase inconsumer spending ahead of the consumption taxraise in April boosted GDP even higher thanexpected in the first quarter. As expected, GDPgrowth declined subsequently. In China, economicgrowth saw a slight decline in the first half of 2014.

The IT MarketAccording to International Data Corporation (IDC),a market research firm based in the United States,the global IT market did not develop uniformly in thefirst half of the current year but still outpaced theoverall economy. Particularly, the mobile devicemarket expanded less quickly than in 2013,primarily due to growing saturation and increasingprice pressure. The IT markets in the emergingeconomies continued to outperform those ofindustrialized economies. However, the differencein growth rates narrowed.

Within the Europe, Middle-East, and Africa (EMEA)region, the IT markets of most Western Europeancountries stabilized and expanded. In Central andEastern Europe, however, political uncertainty inUkraine dampened IT market growth contrary to

the general economic trend, particularly in thesecond quarter.

In the Americas region, IT markets were buoyed byincreased consumer confidence in a positiveeconomic environment. The U.S. IT market largelyovercame the 2013 federal spending cuts by themiddle of 2014, and IT markets in Latin Americacontinued to see strong growth, albeit at a slowerpace than previously.

The IT markets in the Asia Pacific Japan (APJ)region were more restrained, says IDC: TheJapanese IT market benefited from pent-upconsumer demand at the beginning of the year butflattened once this demand contracted and theconsumption tax raise came into effect in April. InChina, IT market growth remained at a low level incomparison with previous years, but did not declinefurther.

Impact on SAPSAP saw a strong performance in EMEA, despiteuncertainties due to the Ukraine crisis. Non-IFRSsoftware and software-related service revenueincreased 8% year-over-year at constantcurrencies. This was the result of 51% growth inNon-IFRS cloud subscriptions and support revenueat constant currencies for the region as well asstrong software revenue growth in the UK andFrance.

The Americas region had a solid performance. Non-IFRS software and software-related service revenueincreased 6% year-over-year at constantcurrencies. The region continued the fast transitionto the cloud with 34% growth in non-IFRS cloudsubscriptions and support revenue at constantcurrencies. SAP also saw strong software revenuegrowth in Canada and continues to see strongdemand in Latin America with tremendous growthopportunities.

In the APJ region SAP had a strong performance.Non-IFRS software and software-related servicerevenue grew by 12% at constant currencies. Non-IFRS cloud subscriptions and support revenue grewby 48% at constant currencies. Australia andMalaysia were highlights, with strong triple-digitsoftware revenue growth at constant currencies.

VISION, MISSION, AND STRATEGY

We did not change our vision, mission, or strategy inthe first six months of 2014. For a detaileddescription, see our 2013 Integrated Report anditem 4 in our 2013 Annual Report on Form 20-F.


PORTFOLIO OF SOFTWARE AND SERVICES

In the first half of 2014, we made enhancements toour portfolio of software and services. For a detaileddescription of our portfolio of software andservices, see our 2013 Integrated Report(www.sapintegratedreport.com) and item 4 in our2013 Annual Report on Form 20-F.

Software PortfolioIn our 2013 Integrated Report, SAP already statedits commitment to helping customers “simplifyeverything, so they can do anything.” With SAPCloud powered by SAP HANA, we will focus oursimplification on three areas – simplifying ourconsumption model, simplifying our portfolio, andsimplifying the user experience.

As already stated in our report for the first quarter,part of this work has been to re-categorize oursoftware products to better reflect our businessstrategy. We have consolidated our five formermarket categories Applications, Analytics, Mobile,Database and Technology, and Cloud into threecategories for the future: Applications, Analytics,and Technology Platform.

The first half of 2014 was marked by SAPPHIRENOW in Orlando, SAP’s premier businesstechnology event for executives, lines of business,and IT decision makers. SAP unveiled its vision forthe future of business, which is to enable a simplerworld, simpler SAP, and simpler customerexperience. Executive keynotes and majorannouncements presented today’s global businessnetwork economy and showcased the strategy forbusinesses to simplify everything through SAPCloud powered by SAP HANA.

ApplicationsIn the first half of 2014, we announced a number offeatures and functions designed to help simplifybusiness and technology to improve people’s lives –including innovations in specific industries, as wellas in mobile, cloud, and business networks.

In June, we made several announcements atSAPPHIRE NOW in Orlando, including:

- SAP Fiori user experience and SAP ScreenPersonas software will now be includedwithin underlying licenses of SAP software.With additional apps released in the secondquarter of 2014, there are currently morethan 300 apps available that use the SAPFiori user experience.

- We introduced SAP Simple Finance, a set ofsolutions based on SAP HANA in SAP HANAEnterprise Cloud to help Chief Financial

Officers and finance departments tackle themost complex tasks in finance.

- We announced plans to co-innovate withcustomers and partners to deliver industry-specific solutions across all 25 industriesserved by SAP. The solutions will run onSAP Cloud powered by SAP HANA.

Also in June, the SAP Match Insights solution forfootball was launched during the World Cup inBrazil as a result of a co-innovation project betweenSAP and the German Football Association (DFB).This solution running on the SAP HANA platformhelps facilitate the analysis of training, preparation,and tournaments to help improve player and teamperformance.

In May, SAP crossed the 1,000 customer mark forSAP Business Suite powered by SAP HANA since itslaunch in January 2013. SAP Business Suitepowered by SAP HANA has already become one ofthe fastest-growing software applications in SAP’shistory.

At the Financials 2014 event in May, we announceda new wave of innovation for SAP Business Suitepowered by SAP HANA to help enterprisesaccelerate their finance transformation. Theinnovation modernizes the SAP ERP Financialssolution to help finance organizations accessinformation in new ways enabled by the speed andpower of SAP HANA.

We also expanded our portfolio of customerrelationship management (CRM) offerings in Mayleveraging the SAP HANA Cloud Platform with newindustry versions designed for insurance, utilities,and retail.

Additionally in the first quarter, we introducedenhancements to cloud solutions for customerengagement, including new capabilities for sales,service, and marketing.

Ariba, an SAP company, and Accenture announcedplans to expand their global alliance to offer newcloud-based solutions that help improve thedelivery of procurement and finance andaccounting business services to clients.

Additionally for Ariba, the first half of 2014 broughtenhancements designed to fuel the new levels ofconnectivity, collaboration, and insight. Theseenhancements will help customers optimize thebuying, selling, and managing of cash in today’sfast-moving networked economy.


In March, we introduced a new rapid-deploymentsolution. It accelerates the preparation ofconsolidated financial reports both to theInternational Financial Reporting Standards (IFRSs)and as required by European Banking AuthorityFinancial Reporting (EBA FINREP) regulations,using the same dataset. It helps banks adapt toFINREP requirements.

In late March, SAP and Adobe announced a globalreseller agreement targeted at digital marketingand omni-channel commerce for enterprisecustomers. We plan to resell Adobe MarketingCloud with the SAP HANA platform and the hybrisCommerce Suite.

Also in late March we made the announcement of anew rapid-deployment solution that enablesbusinesses to secure mobile devices, content, andapps within more days.

In early February, we introduced the SAPCommercial Project Management application.Leveraging existing capabilities of SAP BusinessSuite software, the application offers coverage ofthe lead-to-cash scenario for projects, beginningwith selling a project and continuing throughplanning to delivery.

We also announced general availability of the 9.0version of the SAP Business One application forSAP HANA.

In cloud applications, we introduced enhancementsto the SAP Cloud for Travel and Expense solution,with new capabilities that make travel and expensemanagement simpler, faster, and richer than everbefore.

At the 103rd Annual Convention and EXPO of theNational Retail Federation (NRF) in New York City,we launched SAP Shopper Experience, apersonalized and engaging retail mobile app thattransforms the entire consumer shoppingexperience with social media sharing, loyaltyprograms, and a self-payment system for shoppers.

In January, we announced that NEC, a provider ofinnovative IT, network, and communicationsproducts and solutions for enterprises, had enteredinto an original equipment manufacturer (OEM)agreement to integrate the SAP Business ByDesignsolution with its global cloud-based enterpriseresource planning (ERP) services.

Industry RecognitionSAP was named the overall leader in worldwidesupply chain management and supply chain

planning, according to the Gartner, Inc. “MarketSnapshot: Supply Chain Management Software,Worldwide, 2013” report.

Cloud-based HR software solutions fromSuccessFactors, an SAP company, were positionedfor the second year in a row in the Leaders quadrantof Gartner, Inc.’s “Magic Quadrant for TalentManagement Suites (TMS).”

In February, the SAP Scouting solution won theprestigious “2014 People’s Choice Award” in designat the Interaction Awards, an initiative of theInteraction Design Association (IxDA).

Also in February, Forrester Research ranked SAP asa leader in its report “The Forrester Wave: SAPServices Providers, Q1 2014.”

Already earlier this year, the Corporate ExecutiveBoard (CEB) Tower Group recognized SAP as abest-in-class provider in the report categoriesoperational flexibility and enterprise support in its“Core Banking Systems for the Large Bank Market”report.

AnalyticsAmong the developments in analytics during thefirst half of 2014 were new product updates as wellas two specialized applications for healthcare andsports.

At the BI 2014 conference in May, we announcedupdates to SAP Lumira software that includeintegration to SAP HANA and the ability to createand share infographics.

Also in May, SAP announced the availability of ouranalytics solutions in SAP HANA Enterprise Cloudto enable our customers to deploy our portfolio ofanalytics solutions with more flexibility, choice andcontrol.

SAP unveiled SAP Global Trade Services,Processing Trade in China in May. This newapplication helps centralize processing tradeactivities so that businesses can work efficientlyand transparently with China.

In February, we announced that we are developinginnovative solutions aimed at significantlyimproving health outcomes while cutting costs. Thisincluded the first live tour “Medical Insights” forclinical data integration, an important advance incancer treatment.

Also in February, we announced that we willcontinue to enhance the Extreme Sailing Series in


2014. As the Official Technical Partner of the seriesand title sponsor of the SAP Extreme Sailing Team,we will deliver enhanced analysis tools both pre-and post-race, offering sailors, media, and fansgreater insight into the on-water action.

Industry RecognitionFor the fifth year in a row, analyst firm Gartnernamed SAP market leader in the "Market ShareAnalysis: Business Intelligence and AnalyticsSoftware, 2013” report.

SAP was named a victor in the 2014 “HurwitzVictory Index Report for Advanced Analytics” forboth go-to-market and customer experiencestrength.

In the first half of 2014, we were named a leader byForrester Research Inc. in its report “The ForresterWave: Enterprise Business Intelligence Platforms,Q4 2013.” SAP was cited for its broad businessintelligence innovations.

In addition, our market leader status was confirmedin the latest edition of analyst Howard Dresner’s“Wisdom of Crowds Mobile Computing/MobileBusiness Intelligence Market Study.”

In March, we were named a leader in both Gartner’s2014 Magic Quadrant for Business Intelligence andAnalytic Platforms, and in Gartner’s 2014 MagicQuadrant for Corporate Performance Management(CPM) Suites. This is the eighth year in a row thatGartner has positioned SAP as a leader in the MagicQuadrant for Corporate Performance ManagementSuites.

Technology PlatformOur Technology Platform category addresses thedatabase, IT management, cloud infrastructure,and mobile platform segments of the market.

We announced at SAPPHIRE NOW in Orlandodevelopments related to SAP HANA, including:

- Next steps in delivering SAP HANA as themodern platform that empowers customersto transform their businesses and innovatein the cloud. This includes new innovations,key features, and functions for SAP HANA,mobile, analytics, data services, and cloudintegration services.

- The new release of service pack 8 (SP8) forSAP HANA provides next steps forcustomers to accelerate, innovate, andsimplify their business.

- The winners of the inaugural SAP HANAInnovation Award, celebrating customers

that have positively impacted business andsociety with the platform.

- Updates on how SAP HANA Cloud Platform(our platform as a service (PaaS)) and SAPHANA Marketplace are helping to create asimple and compelling end-to-endexperience for customers, partners, anddevelopers.

- We are working with an open ecosystem todrive innovation on the SAP HANA platform.Collaborations with partners, including RedHat, IBM, HP, and VMware, as well asstartups offer customers broader choice,ease of deployment, and simplified ITenvironments.

OpenText and SAP announced in May that SAPArchiving by OpenText will now run on the SAPHANA platform and include support for SAP HANAEnterprise Cloud service deployments.

SAP and VMware announced in May that the SAPHANA platform on VMware vSphere 5.5 forproduction use has been released to customers.This enables customers to innovate and simplifytheir data centers by achieving faster time-to-value,higher service levels, and lower total cost ofownership (TCO).

Also in May, SAP and Microsoft announced anextension to our long-term partnership in threeareas: Enterprise cloud computing with SAPapplications certification for Microsoft Azure;improved interoperability between data from SAPapplications and Microsoft Office; and mobileproductivity with expanded development andsupport for Windows and Windows Phone 8.1.

SAP announced general availability of the SAPMobile Platform 3.0 in May. The latest versioncompletes the full unification of our mobile appdevelopment platform frameworks, making it easierfor customers to build and deploy apps.

In April, SAP made significant gains toward buildingout the SAP Cloud powered by SAP HANA in thefirst half of 2014 with the announcement of newsubscription models for SAP Business Suitethrough the SAP HANA Enterprise Cloud service,the expansion of new global data centersworldwide, and enhanced migration services toease the customer journey to the cloud.

Ariba, an SAP company, announced in April that theAriba Network is moving to the SAP HANA platform.The move will enable companies to gain newinsights into their operations and act on them more


quickly to drive better business outcomes andcompetitive advantage.

In cloud technologies, we began the year byannouncing plans to collaborate with 12 world-classcloud service providers to offer SAP-validated,cloud-based infrastructure and application servicesglobally. Our partners include CenturyLinkTechnology Solutions, China Datacom, Fujitsu,Hitachi Data Systems, HP, IBM, Swisscom, Telstra,T-Systems, Verizon, Virtustream, and VMwarevCloud & Hybrid Service.

Our cloud roadmap also advanced in the first half of2014, as we introduced simplified pricing,deployment, and accessibility options for SAPHANA. Customers now have the ability to choosefrom three offerings: SAP HANA AppServices, SAPHANA DBServices, and SAP HANA InfrastructureServices.

In late March, SAP announced the availability of the7.4 version of the SAP Business Warehouseapplication powered by SAP HANA.

SAP unveiled many of its recent innovations atMobile World Congress in February. Among ourannouncements at this event were:

- A collaboration with Xamarin andService2Media to provide developers withmobile app development frameworks thatcan efficiently and cost-effectively enabledevelopment on the SAP Mobile Platform.

- New LTE (Long-Term Evolution) roamingagreements with MTT Russia, Orange, andTelenor Global Services.

- An innovative technology infrastructure forin-vehicle mobility services developed bySAP and BMW. This collaboration bringsSAP one step closer toward making itsvision of the connected car a reality.

Also in the first half of 2014, we announced anexpansion of our relationship with DigitalRoute, aleading provider of new approaches to Big Datamanagement, to produce a solution that will bringtogether data from both operational and businesssupport systems.

The British Columbia Centre for Excellence inHIV/AIDS at St. Paul's Hospital in Vancouverannounced in the first quarter that it is pioneering anew technology from PHEMI Health Systems andSAP to accelerate the treatment and improve theoutcome for patients diagnosed with HIV/AIDS.

Industry RecognitionSAP was presented the inaugural 2014 IndustryInnovation Award at the Global Sports ManagementSummit in May. The award highlights SAP’scommitment to make every team and athletebetter, and engage fans better.

In March, SAP generated along with a team oftechnology partners, including BMMsoft, HP, Intel,NetApp, and Red Hat, a new world record for theworld’s largest data warehouse using the SAPHANA platform and SAP IQ software. Thisindependently audited 12.1-petabyte datawarehouse has been recognized by Guinness WorldRecords, and is four times larger than the previousrecord.

RESEARCH AND DEVELOPMENT

Our total research and development expensedecreased slightly by 1% to €1,116 million in the firsthalf of 2014, compared to €1,124 million in thecorresponding period in 2013. We had 18,074 full-time equivalent (FTE) employees working inresearch and development teams on June 30, 2014,which increased by 700 FTEs compared to the prioryear (June 30, 2013: 17,374).

On our IFRS numbers, the portion of total revenuewe spent on research and development in the firsthalf of 2014 was 14.2%, which decreased by 0.5percentage points compared to the 14.7% recordedfor the first half of 2013. On the non-IFRS numbers,the portion of total revenue we spent on R&D in thefirst half of 2014 was 13.5%, which decreased by0.6 percentage points compared to the sameperiod in the previous year (14.1%).

ACQUISITIONS

On June 13, 2014, we acquired the United States-based American company SeeWhy, the leadingprovider of cloud-based behavioral targetmarketing solutions to help businesses increasecustomer engagement and drive revenues.

On May 2, 2014, we closed our acquisition of UnitedStates-based American company Fieldglassfollowing approval by the relevant antitrustauthorities. Fieldglass is the leading provider ofcloud solutions for procuring and managingcontingent labor and services.

For more information about acquisitions of the prioryear, see Note (4) in the Notes to the 2013 AnnualReport.


EMPLOYEES

Nothing has a greater impact on SAP’s long-termsuccess than the creativity, talent, andcommitment of our people. Their ability tounderstand the needs of our customers and toinnovate delivers sustainable value to our company,our customers, and society. Successful strategiesto attract, retain, develop, and engage ouremployees, therefore, are critical to driving aculture of innovation, sustained growth, andprofitability.

An important factor for our long-term success isour ability to attract and retain talented employees.In the second quarter of 2014, the employeeretention rate was 93.5% (compared to 93.6% inthe second quarter of 2013). We define employeeretention rate as the ratio between the averagenumber of employees less voluntary employeedepartures (fluctuation) and the average number ofemployees (in full-time equivalents).

One of SAP’s overall non-financial goals is fosteringa diverse workforce, specifically increasing thenumber of women in management. At the end ofthe second quarter of 2014, 21.1% of allmanagement positions at SAP were held by women,compared to 21.4% at the end of June 2013. SAPhas set a long-term target to increase the share ofwomen in management to 25% by the year 2017.

On June 30, 2014, we had 67,651 full-timeequivalent (FTE) employees worldwide (June 30,2013: 64,937; December 31, 2013: 66,572).

Our overall employee headcount on June 30, 2014,included 17,171 FTEs based in Germany (June 30,2013: 16,683), and 13,563 FTEs based in the UnitedStates (June 30, 2013: 13,550).

ORGANIZATION AND CHANGES INMANAGEMENT

At the Annual General Meeting of Shareholders onMay 21, 2014, SAP shareholders approved theconversion of the Company's legal form to aEuropean Company (Societas Europaea, SE). Theconversion became effective when it was entered inthe commercial register on July 7, 2014. Since thisdate, the Company’s legal form is SAP SE.

On May 4, 2014, the SAP AG Supervisory Boardappointed Robert Enslin and Bernd Leukert to theSAP AG Executive Board, with immediate effect.Robert Enslin continues to be responsible for SAP'ssales organization. Bernd Leukert assumedresponsibility for the entire development

organization from Vishal Sikka, who on May 4, 2014,resigned from the SAP Executive Board forpersonal reasons and left the Company.

In addition, the Supervisory Board endorsed theappointment of Helen Arnold and Stefan Ries to ourGlobal Managing Board, with a view to furtherstrengthening the next generation of SAPexecutives.

Bob Calderoni, president of Ariba, an SAPcompany, and a member of the Global ManagingBoard, left SAP on January 15, 2014.


REPORT ON ECONOMIC POSITION

We simplified the presentation of our software andsoftware-related service revenue in our incomestatement starting with the first quarter of 2014 toexpress our focus on the combined power of our fastgrowing cloud business and our solid core business.With this modification, only the order and subtotalswere changed; the content of line items remainedunchanged.

Software and software-related service revenue nowstarts with the line item cloud subscriptions andsupport and is followed by line items software andsupport of our on-premise activities. The softwareand cloud subscriptions row was deleted and a newsum for software and support was added.

In the discussion of our assets, financial position, andoperating results, the financial data presented for thefirst half of 2014 fully contains the revenue andexpenses, assets, liabilities and cash flow fromhybris. Fieldglass numbers are included in ourconsolidated financial statements since the May 2,2014 acquisition date. hybris numbers are notincluded in the prior-year amounts – hybris wasacquired on August 1, 2013.

Segment InformationIn the first quarter of 2014, we took significant stepsto drive forward our strategy and our ambition tobecome THE cloud company powered by SAP HANA.To execute this strategy, we merged certain areas ofthe company that performed similar tasks (forexample, the on-premise sales forces with the cloudsales forces, and the on-premise support units withthe cloud support units) to achieve a seamlessorganization of SAP.

Since this integration, our cloud-related activities areno longer dealt with by separate components in ourCompany. Our Executive Board assesses thefinancial performance of our Company on anintegrated basis only. Consequently, with effect from

the first quarter of 2014, SAP has one singleoperating segment.

For more information about the changes to oursegment reporting, see the Notes to theConsolidated Interim Financial Statements section,Note (19).

Performance Against Our Outlook for 2014(Non-IFRS)In this section, all discussion of the first half years’contribution to target achievement is basedexclusively on non-IFRS measures. However, in thefollowing section, the discussion of results refers toIFRS figures only, so those figures are not expresslyidentified as IFRS figures.

Starting in the second quarter of 2014, weadditionally adjust our non-IFRS operating expenseby excluding the expenses resulting from the Versatalitigation (for more information about this litigation,see the Notes to the Consolidated Interim FinancialStatements section, Note (16)). Prior-year amountshave been adjusted to comply with the modified setof non-IFRS adjustments. We exclude the Versatalitigation expenses to provide additional insight intothe comparability of our ongoing operatingperformance across periods and to continue thealignment of our non-IFRS measures with our internalperformance measures. Our internal performancemeasures neither include effects from the Versatalitigation.

We present, discuss, and explain the reconciliationfrom IFRS measures to non-IFRS measures in theSupplementary Financial Information (Unaudited)section.

Guidance for 2014 (Non-IFRS)For our guidance based on non-IFRS numbers, seethe Forecast for SAP passage in this interimmanagement report.


Key Figures – SAP Group in the Second Quarter of 2014 (Non-IFRS)

Non-IFRS€ millions, unless otherwise stated 4/1/ –

6/30/20144/1/ –

6/30/2013Change in % Change in %

(ConstantCurrency)

Cloud subscriptions and support 242 183 32 39Software 957 982 2 1Support 2,280 2,182 4 9

Software and software-related service revenue 3,480 3,347 4 8Total revenue 4,153 4,091 2 5Operating expense 2,917 2,905 0 5Operating profit 1,236 1,186 4 7Operating margin (in %) 29.8 29.0 0.8pp 0.6ppProfit after tax 938 850 10 NA

Effective tax rate (in %) 25.4 26.8 1.4pp NAEarnings per share, basic (in €) 0.79 0.71 10 NA

Deferred cloud subscriptions and support revenue (June 30) 448 361 24 29

Actual Performance in the Second Quarterof 2014 (Non-IFRS)Our revenue from cloud subscriptions and support(non-IFRS) was €242 million (Q2 2013:€183 million), an increase of 32% (39% at constantcurrency) compared to the same period in 2013.Our cloud subscriptions and support margin wasdown 8.8 percentage points to 64%. This decreasewas primarily due to the ramp-up of the CloudInfrastructure Delivery to reflect the increasingcustomer demand. In the second quarter 2014,Fieldglass contributed €11 million (non-IFRS) toSAP’s cloud subscriptions and support revenue.

Deferred cloud subscriptions and support revenue(non-IFRS) was €448 million on June 30, 2014(June 30, 2013: €361 million). On a constantcurrency basis, the increase was 29%. The openingbalance for Fieldglass deferred cloud subscriptionand support revenue (non-IFRS) on May 2, 2014was €1 million.

Our annual cloud revenue run rate (non-IFRS) is€1,186 million. The annual revenue run rate is thetotal of second-quarter 2014 cloud subscription andsupport revenue (non-IFRS) (€242 million) plusnon-IFRS cloud-related professional services andother service revenue (€54 million) multiplied byfour. This definition has changed from the previousyear.

Non-IFRS cloud subscription and support revenueand non-IFRS cloud-related professional servicesand other service revenue from our former Aribasegment (as reported in our 2013 consolidatedfinancial statements) included certain on-premiserevenue. With effect from the first quarter of 2014,

we have ceased presenting Ariba on-premiserevenue as cloud revenue because we haveintegrated our cloud-related activities, see Note(19). Since the first quarter of 2014, we have basedour annual cloud revenue run rate on cloud revenue,therefore we have adjusted that calculationaccordingly.

Calculated cloud billings (non-IFRS) increased 41%year-over-year. On a constant currency basis, theincrease was 37%. This is calculated as total of aperiod's cloud subscription and support revenueand of the respective period's change in thedeferred cloud subscription and support revenuebalance.

SAP continues to scale the world’s largest Web-based business trading community with trailingtwelve month Ariba network spend volumeexceeding US$540 billion.

In the second quarter of 2014, software andsoftware-related service revenue (non-IFRS) was€3,480 million (Q2 2013: €3,347 million), anincrease of 4%. On a constant currency basis, theincrease was 8%.

Non-IFRS total revenue in the same period was€4,153 million (Q2 2013: €4,091 million), anincrease of 2%. On a constant currency basis, theincrease was 5%.

Our prior-year non-IFRS operating expense,operating profit, operating margin, and profit aftertax have been adjusted for the Versata litigationexpenses to comply with the modified set of non-IFRS adjustments.


Non-IFRS operating expense in the second quarterof 2014 stayed constant at €2,917 million comparedto the same period in the prior year (Q2 2013:€2,905 million). On a constant currency basis, non-IFRS operating expense increased by 5%.

Non-IFRS operating profit was €1,236 million (Q22013: €1,186 million), an increase of 4% (7% atconstant currencies).

Non-IFRS operating margin in the second quarter of2014 was 29.8%, an increase of 0.8 percentagepoints (Q2 2013: 29.0%). Non-IFRS operatingmargin on a constant currency basis was 29.5%, anincrease of 0.6 percentage points.

In the second quarter of 2014, non-IFRS profit aftertax was €938 million (Q2 2013: €850 million), anincrease of 10%. Non-IFRS basic earnings per sharewas €0.79 (Q2 2013: €0.71), an increase of 10%.

The non-IFRS effective tax rate in the secondquarter of 2014 was 25.4% (Q2 2013: 26.8%). Theyear-over-year decrease in the effective tax ratemainly resulted from tax effects relating tointercompany financing, changes in foreigncurrency exchange rates, and the repeal of theminimum taxation in Mexico, which were partlycompensated by changes in taxes for prior yearsand in the regional allocation of income.

Key Figures – SAP Group in the First Half of 2014 (Non-IFRS)

Non-IFRS€ millions, unless otherwise stated 1/1/ –

6/30/20141/1/ -

6/30/2013Change in % Change in %

(ConstantCurrency)

Cloud subscriptions and support 463 350 32 38Software 1,581 1,638 4 1Support 4,495 4,295 5 9Software and software-related service revenue 6,538 6,284 4 8

Total revenue 7,854 7,727 2 6Operating expense 5,699 5,639 1 5Operating profit 2,155 2,088 3 7Operating margin (in %) 27.4 27.0 0.4pp 0.3ppProfit after tax 1,604 1,539 4 NAEffective tax rate (in %) 25.6 24.5 1.2pp NA

Earnings per share, basic (in €) 1.34 1.29 4 NA


Actual Performance in the First Halfof 2014 (Non-IFRS)In the first half of 2014, our revenue from cloudsubscriptions and support (non-IFRS) was€463 million (first half of 2013: €350 million), anincrease of 32% (38% at constant currencies)compared to the same period in 2013. Our cloudsubscriptions and support margin was down 5.5percentage points to 67%. This decrease wasprimarily due to the ramp-up of the CloudInfrastructure Delivery to reflect the increasingcustomer demand. For more information on thecontribution of Fieldglass to the cloud subscriptionand support revenue, see Report on EconomicPosition, Actual Performance in the Second Quarterof 2014 (Non-IFRS).

In the first half of 2014, software and software-related service revenue (non-IFRS) was€6,538 million (first half of 2013: €6,284 million),

an increase of 4%. On a constant currency basis,the increase was 8%.

Non-IFRS total revenue in the same period was€7,854 million (first half of 2013: €7,727 million), anincrease of 2%. On a constant currency basis, theincrease was 6%.

Our prior-year non-IFRS operating expense,operating profit, operating margin, and profit aftertax have been adjusted for the Versata litigationexpenses to comply with the modified set of non-IFRS adjustments.

Non-IFRS operating expense in the first half of 2014was €5,699 million (first half of 2013:€5,639 million), an increase of 1%. On a constantcurrency basis, the increase was 5%.


Non-IFRS operating profit was €2,155 million (firsthalf of 2013: €2,088 million), an increase of 3% (7%at constant currencies).

Non-IFRS operating margin in the first half of 2014was 27.4%, an increase of 0.4 percentage points(first half of 2013: 27.0%). Non-IFRS operatingmargin on a constant currency basis was 27.4%, anincrease of 0.3 percentage points.

In the first half of 2014, non-IFRS profit after taxwas €1,604 million (first half of 2013:€1,539 million), an increase of 4%. Non-IFRS basic

earnings per share was €1.34 (first half of 2013:€1.29), an increase of 4%.

The non-IFRS effective tax rate in the first half of2014 was 25.6% (first half of 2013: 24.5%). Theyear-over-year increase in the effective tax ratemainly resulted from changes in taxes for prioryears and in the regional allocation of income whichwere partly compensated by tax effects relating tointercompany financing, changes in foreigncurrency exchange rates, and the repeal of theminimum taxation in Mexico.


Key Figures – SAP Group in the Second Quarter of 2014 (IFRS)

€ millions, unless otherwise stated 4/1/ –6/30/2014

4/1/ –6/30/2013

Change Change in %

Cloud subscriptions and support 241 159 82 52Software 957 982 24 2Support 2,279 2,177 102 5Software and software-related service revenue 3,478 3,318 160 5

Total revenue 4,151 4,062 89 2Operating expense 3,453 3,074 379 12Operating profit 698 988 291 29Operating margin (in %) 16.8 24.3 7.5pp NAProfit after tax 556 724 168 23Effective tax rate (in %) 22.6 24.8 2.2pp NA

Headcount (average first six months) 67,008 64,756 2,252 3Days sales outstanding in days (June 30) 64 62 2 3Earnings per share, basic (in €) 0.47 0.61 0.14 23


OPERATING RESULTS IN THE SECONDQUARTER (IFRS)

OrdersThe total number of completed transactions for on-premise software in the second quarter of 2014decreased 5% year on year to 13,213 (Q2 2013:13,936). In contrast, the average value of softwareorders received for on-premise software dealsincreased 10% compared to the year before. Of allour software orders received in the second quarter of2014, 21% were attributable to deals worth morethan €5 million (Q2 2013: 14%), while 47% wereattributable to deals worth less than €1 million(Q2 2013: 51%).

RevenueOur revenue from cloud subscriptions and supportwas €241 million (Q2 2013: €159 million), an increaseof 52% compared to the same period in 2013.Deferred cloud subscriptions and support revenuewas €445 million on June 30, 2014 (June 30, 2013:€354 million). For more information on thecontribution of Fieldglass to the cloud subscriptionand support revenue and deferred revenue, seeReport on Economic Position, Actual Performance inthe Second Quarter of 2014 (Non-IFRS). Thenumbers mentioned are identical, both on an IFRSand non-IFRS basis.

Our annual cloud revenue run rate is €1,181 million.Calculated cloud billings increased 39% year-over-year.

In the second quarter of 2014, software revenue was€957 million (Q2 2013: €982 million), a decrease of2% compared to the same period in 2013.

Total revenue was €4,151 million (Q2 2013:€4,062 million), an increase of 2% compared to thesame period in 2013.

Operating ExpenseIn the second quarter of 2014, our operating expenseincreased 12% to €3,453 million (Q2 2013:€3,074 million). A main driver of this increase werethe expenses resulting from recognizing a provisionfor the Versata litigation in the amount of €289million. In contrast, the respective operating expensefrom the second quarter of 2013 decreased as wereversed the then-existing provision of €33 million inresponse to the United States Patent and TrademarkOffice (USPTO) decision to cancel the disputedpatent. For more information about this litigation, seethe Notes to the Interim Financial Statementssection, Note (16).

Operating Profit and Operating MarginIn the second quarter of 2014, operating profitdecreased 29% compared with the same period inthe previous year to €698 million (Q2 2013:€988 million). The decrease was mainly due to theexpenses from recognizing a provision for theVersata litigation.

Our operating margin decreased by 7.5 percentagepoints to 16.8% (Q2 2013: 24.3%). The expensesfrom recognizing a provision for the Versata litigationhad a 7.0 percentage point negative effect on ouroperating margin in the second quarter of 2014(Q2 2013: 0.8 percentage point positive effect).

Profit After Tax and Earnings per ShareIn the second quarter of 2014, profit after tax was€556 million (Q2 2013: €724 million), a decrease of


23%. Basic earnings per share was €0.47 (Q2 2013:€0.61), a decrease of 23%. The year-over-yeardecrease was mainly driven by the expenses fromrecognizing a provision for the Versata litigation.

The effective tax rate in the second quarter of 2014was 22.6% (Q2 2013: 24.8%). The year-over-yeardecrease in the effective tax rate mainly resultedfrom tax effects relating to intercompany financing,changes in foreign currency exchange rates and therepeal of the minimum taxation in Mexico which were

partly compensated by changes in taxes for prioryears and in the regional allocation of income.

Key Figures – SAP Group in the First Half of 2014 (IFRS)

€ millions, unless otherwise stated 1/1/ –6/30/2014

1/1/ -6/30/2013

Change Change in %

Cloud subscriptions and support 460 296 164 55Software 1,581 1,638 58 4Support 4,492 4,286 206 5Software and software-related service revenue 6,533 6,220 313 5

Total revenue 7,849 7,663 186 2Operating expense 6,428 6,029 400 7Operating profit 1,421 1,634 214 13Operating margin (in %) 18.1 21.3 3.2pp NAProfit after tax 1,090 1,244 154 12Effective tax rate (in %) 23.4 21.5 1.9pp NA

Earnings per share, basic (in €) 0.91 1.04 0.13 12


OPERATING RESULTS IN THE FIRST HALF (IFRS)

OrdersThe total number of On-Premise software deals weclosed decreased by 3% from the comparatoramount in the first half of 2014 to 25,084 (first half of2013: 25,923). In contrast, the average value of On-Premise software orders we received remainedstable compared with the previous year. In the firsthalf of 2014, 18% (first half of 2013: 17%) of the valueof new software orders came from orders whosevolume exceeded €5 million, while 50% (first half of2013: 50%) came from orders worth less than€1 million.

RevenueOur revenue from cloud subscriptions and supportwas €460 million (first half of 2013: €296 million), anincrease of 55% compared to the same period in2013. For more information on the contribution ofFieldglass to the cloud subscription and supportrevenue, see Report on Economic Position, ActualPerformance in the Second Quarter of 2014 (Non-IFRS). The numbers mentioned are identical, both onan IFRS and non-IFRS basis.

In the first half of 2014, software revenue was€1,581 million (first half of 2013: €1,638million), adecrease of 4% compared to the same period in2013.

Total revenue was €7,849 million (first half of 2013:€7,663 million), an increase of 2% compared to thesame period in 2013.

Operating ExpenseIn the first half of 2014, our operating expenseincreased by 7% to €6,428 million (first half of 2013:€6,029 million). A main driver of this increase werethe expenses resulting from recognizing a provisionfor the Versata litigation in the amount of €289million. In contrast, the respective operating expensefrom the first half of 2013 decreased as we reversedthe then-existing provision of €32 million in responseto the United States Patent and Trademark Office(USPTO) decision to cancel the disputed patent. Formore information about this litigation, see the Notesto the Interim Financial Statements section, Note(16).

Operating Profit and Operating MarginIn the first half of 2014, operating profit decreased by13% compared with the same period in the previous


year to €1,421 million (first half of 2013:€1,634 million). The decrease was mainly due to theexpenses from recognizing a provision for theVersata litigation.

Our operating margin decreased by 3.2 percentagepoints to 18.1% (first half of 2013: 21.3%). Theexpenses from recognizing a provision for theVersata litigation had a 3.7 percentage point negativeeffect on our operating margin in the first half of 2014(first half of 2013: 0.4 percentage point positiveeffect).

Profit After Tax and Earnings per ShareIn the first half of 2014, profit after tax was€1,090 million (first half of 2013: €1,244 million), a

decrease of 12%. Basic earnings per share was€0.91 (first half of 2013: €1.04), a decrease of 12%.The year-over-year decrease was mainly driven bythe expenses from recognizing a provision for theVersata litigation.

The effective tax rate in the first half of 2014 was23.4% (first half of 2013: 21.5%). The year-over-yearincrease in the effective tax rate mainly resulted fromchanges in taxes for prior years and in the regionalallocation of income which were partly compensatedby tax effects relating to intercompany financing,changes in foreign currency exchange rates and therepeal of the minimum taxation in Mexico.


FINANCES (IFRS)

Cash Flow and LiquidityOperating cash flow for the first half of 2014 was€2,575 million (first half of 2013: €2,482 million).Thus, our consistently strong operating cash flowincreased 4% over the same period in the previousyear, marking SAP’s highest ever operating cashflow for the first half of a year.

Group liquidity stood at €3,180 million on June 30,2014 (December 31, 2013: €2,841 million). Groupliquidity comprised cash and cash equivalentstotaling €3,123 million (December 31, 2013:€2,748 million) and current investments totaling€57 million (December 31, 2013: €93 million).

Group Liquidity of SAP Group

€ millions 6/30/2014

12/31/2013

Change

Cash and cash equivalents 3,123 2,748 375Current investments 57 93 36

Group liquidity, gross 3,180 2,841 339Current financial debt 500 586 86Net liquidity 1 2,680 2,255 425Non-current financial debt 3,740 3,722 18Net liquidity 2 1,060 1,467 407

Net liquidity 1 is total group liquidity minus currentfinancial debt. It increased on a year-to-date basisby €425 million to €2,680 million.

Net liquidity 2, defined as net liquidity 1 minus non-current financial debt, was –€1,060 million(December 31, 2013: –€1,467 million).

Financial debt consists of current and non-currentbonds and private placements. For moreinformation about our financial debt, see the Notesto the Consolidated Interim Financial Statementssection, Note (12).

Free Cash Flow and Days’ Sales Outstanding(DSO)

Our free cash flow and our DSO on June 30, 2014,were as follows:

Free Cash Flow

€ millions 1/1 –6/30/

2014

1/1 –6/30/

2013

Change in%

Free cash flow 2,271 2,217 2

We calculate free cash flow as net cash fromoperating activities minus purchases of intangibleassets and property, plant, and equipment.

Days’ Sales Outstanding

6/30/2014

6/30/2013

Change inDays

Days' sales outstanding(DSO) in days 64 62 2

Days’ sales outstanding (DSO) for receivables,defined as average number of days from the raisedinvoice to cash receipt from the customer, was64 days, a 2-day increase year over year.

ASSETS (IFRS)

Analysis of Consolidated Statements ofFinancial PositionThe total assets of the Group were €28,226 millionon June 30, 2014, an increase of €1,137 millionsince December 31, 2013, resulting mainly from anincrease in goodwill out of the Fieldglassacquisition.

The equity ratio on June 30, 2014, was 57%(December 31, 2013: 59%), a slight decrease.

InvestmentsInvestments in intangible assets and property,plant, and equipment were €1,051 million in the firsthalf year of 2014, which increased by €705 millioncompared to the first half of 2013 (€346 million)due to the Fieldglass acquisition.

Off-Balance-Sheet Financial InstrumentsThere are no off-balance-sheet financialinstruments, such as sale-and-lease-backtransactions, asset-backed securities, or liabilitiesrelated to structured entities, that are not disclosedin our interim Consolidated Financial Statements.

Competitive IntangiblesThe assets that are the basis for our current andfuture success do not appear on the ConsolidatedStatements of Financial Position. This is apparentfrom a comparison of the market capitalization ofSAP SE, which was €69.3 billion, with the equity ofthe SAP Group on the Consolidated Statements ofFinancial Position, which was €16.2 billion on June30, 2014 (December 31, 2013: €16.0 billion). Thismeans that the market capitalization of our equity ismore than four times higher than the book value.

Customer capital, our employees and theirknowledge and skills, our ecosystem of partners,the SAP brand, and our past investments in


research and development are some of the mostimportant competitive intangibles that influence ourmarket value.

According to the 2013 Interbrand annual survey ofthe Top 100 Best Global Brands, SAP is ranked the25th most valued brand in the world. Interbranddetermined a value of US$16.7 billion.

ENERGY CONSUMPTION AND GREENHOUSEGAS EMISSIONS

Over the past several years, we have worked tobetter understand the connections between ourenergy consumption, its related cost, and theresulting environmental impact. Today we measureand address our energy usage throughout SAP, aswell as our greenhouse gas emissions across ourentire value chain. Between the beginning of 2008and the end of the second quarter 2014, wecalculate that energy efficiency initiatives havecontributed to a cumulative cost avoidance of €290million, compared to a business-as-usualextrapolation.

Moreover, to credibly offer solutions that help ourcustomers better manage their use of resources,we must do so ourselves. By addressing thefinancial and environmental impact of our energyconsumption, we have gained valuable insights tocreate solutions for our customers.

Our goal is to reduce the greenhouse gas (GHG)emissions from our operations to levels of the year2000 by 2020. SAP’s GHG emissions for thesecond quarter 2014 totaled 140 kilotons comparedto 145 kilotons in the second quarter of 2013. Thisdecrease is primarily due to additional renewableenergy certificates procured. This positive effectwas partially offset by an increase in businessflights compared to the first quarter of 2014.

As we measure our emissions per employee andper euro of revenue, we gain insight into ourefficiency as we grow. Since 2007, we haveincreased our efficiency according to bothmeasures, lowering our emissions per employee byabout 29% and per euro of revenue by about 45%at the end of June 2014 (rolling four quarters).

To further reduce emissions, SAP launched the"SAP E-Fleet" initiative to raise the portion ofelectric vehicles in its company car fleet to 20% by2020. In line with its existing policy for officebuildings and data centers, SAP will provide thepower for its electric company cars solely from100% renewable sources.

SAP STOCK

SAP SE common stock is listed on the FrankfurtStock Exchange as well as on a number of otherGerman exchanges. On the New York StockExchange (NYSE), SAP American depositaryreceipts (ADRs), each representing one commonshare, trade under the symbol SAP. SAP is acomponent of the DAX (the index of 30 Germanblue chip companies) and the Dow Jones EUROSTOXX 50. We use the S&P North AmericanTechnology Software Index for comparisonpurposes.

Key Facts About SAP Stock / SAP ADRs

ListingsGermany Berlin, Frankfurt, StuttgartUnited States (ADR) New York Stock ExchangeIDs and SymbolsWKN/ISIN 716460/DE0007164600NYSE (ADR) 803054204 (CUSIP)Reuters SAPG.F or .DE

Bloomberg SAP GRWeight (%) in Indices on6/30/2014DAX 30 6.36 %

Prime All Share 4.94 %

CDAX 5.08 %

HDAX 5.21 %

Dow Jones STOXX 50 1.64 %Dow Jones EUROSTOXX 50

2.65 %

SAP stock declined 4.0% in the second quarter of2014, whereas the two major benchmark indexesrose slightly: The DAX 30 gained 2.9%, surpassingthe 10,000 point mark for the first time in June,while the EURO STOXX 50 increased 2.1%. In thefirst half of the year SAP stock declined 10%.

SAP stock started the second quarter at €58.76,the Xetra closing price on March 31, and reached itsquarter peak of €59.15 on April 4. The share priceremained at a level between €57.50 and €58.00after publication of the first-quarter results on April17 before the Ukraine crisis subdued the mood ofthe stock markets.

The announcement of personnel changes on theSAP Executive Board as well as the ex-dividendmarkdown after the Annual General Meeting ofShareholders – at which SAP shareholdersapproved a dividend of €1.00 per share – putadditional pressure on SAP stock during this period:It reached €54.41, its low point of the quarter, onMay 22. At the same time, the benchmark indexes


benefited from new records on the U.S. stockmarkets and hopes that the European Central Bank(ECB) would further loosen its monetary policy.ECB lived up to these expectations, and in responsethe DAX soared past the 10,000 point mark for thefirst time on June 9. SAP stock, meanwhile, climbedto €57.60 on June 19, bolstered by the generalstock market mood and positive resonance to

SAP’s user conference SAPPHIRE NOW. At the endof the month, however, escalating tensions inUkraine and in Iraq and news of disappointingeconomic data from the United States weighed onmarket sentiment, causing SAP stock to close thesecond quarter at €56.40.

Capital StockSAP's capital stock on June 30, 2014, was€1,228,504,232 (December 31, 2013:€1,228,504,232). It is issued as 1,228,504,232 no-par shares, each with an attributable value of €1 inrelation to the capital stock.

Free FloatOn June 30, 2014, the proportion of our stock infree float, applying the definition accepted on theFrankfurt Stock Exchange – which excludestreasury stock from the free float – stood at 74.5%(December 31, 2013: 74.7%).

Market CapitalizationWith the Xetra closing price at €56.40 on the lasttrading day in the first half of the year, SAP’smarket capitalization was €69.3 billion based on1,228,504,232 million outstanding shares. SAP wastherefore the fifth largest DAX company based onmarket capitalization.

Deutsche Börse uses the free-float factor to weightcompanies in the DAX. Based on a free-float factorof 74.5%, this results in a free-float market

capitalization of approximately €51.6 billion. Whenmeasured by its free-float market capitalization,SAP was the sixth-largest company listed on theDAX at the end of the second quarter.

For more information about SAP common stock,see the SAP Web site at www.sap.com/investor.


RISK AND OPPORTUNITY MANAGEMENT

We have comprehensive risk-managementstructures in place, which are intended to enable usto recognize and analyze risks early and to take theappropriate action. For changes in our legal liabilityrisks since our last annual report, see Note 16 in theNotes to the Interim Financial Statements. Theother risk factors remain largely unchanged since2013, and are discussed more fully in our 2013Integrated Report and our Annual Report on Form20-F for 2013. We do not believe the risks we haveidentified jeopardize our ability to continue as agoing concern. Opportunities also remain largelyunchanged since 2013.

SUPPLEMENTARY REPORT

On July 7, 2014, the conversion of the legal form ofthe company from an AG to a European Company(Societas Europaea, SE) took effect with theregistration in the commercial register.

REPORT ON EXPECTED DEVELOPMENTS

Future Trends in the Global EconomyThe economists at the European Central Bank(ECB) expect the global economy to continue togrow gradually for the remainder of 2014. Theybelieve that domestic demand will increase inindustrialized economies and that economicrecovery in the rest of the world will benefit fromthis. However, the ECB also predicts that structuralfactors such as capacity bottlenecks will hold backsome of the emerging economies. Overall, itanticipates the global growth momentum will shiftin favor of industrialized economies.

In the Europe, Middle-East, and Africa (EMEA)region, the ECB predicts an increase in euro areaGDP of 1% in 2014, which is slightly lower than itsearlier projection. For 2015, the analysts see higher-than-projected growth. In Central and EasternEurope, the ECB believes the economy willstrengthen as the year progresses, despite theUkraine crisis.

The ECB also sees positive economic trends in theAmericas region: It expects the U.S. economy togrow considerably in the remainder of 2014 thanksto a faster recovery. It also believes growth in LatinAmerica will pick up gradually by the end of theyear, yet remain below the high levels of previousyears.

In the Asia Pacific Japan (APJ) region, the ECBexpects the Japanese economy to return to a

moderate growth level in the second half of 2014. InChina, the experts believe growth will stabilize in thecoming months.

Economic Trends – Year Over Year GDP Growth

%World 2013e 2014p 2015pWorld 3.0 3.6 3.9Advanced economies 1.3 2.2 2.3

Developing and emerging economies

4.7 4,9 5.3

Europe, the Middle East, and Africa (EMEA)Euro area –0.5 1.2 1.5Germany 0.5 1.7 1.6Central and Eastern Europe 2.8 2.4 2,9Middle East and NorthAfrica

2.4 3.2 4.4

Sub-Saharan Africa 4.9 5.4 5.5AmericasUnited States 1.9 2.8 3.0Canada 2.0 2.3 2.4Central and South America,Caribbean

2.7 2.5 3.0

Asia Pacific Japan (APJ)Asian developingeconomies

6.5 6.7 6.8

Japan 1.5 1.4 1.0China 7.7 7.5 7.3

e = Estimate; p = ProjectionSource: International Monetary Fund (IMF), World EconomicOutlook April 2014, Recovery Strengthens, Remains Uneven, asof April 3, 2014, p. 18.

IT Market: The Outlook for 2014According to International Data Corporation (IDC),a market research firm based in the United States,the global IT market will develop positively in 2014:As more and more companies in industrializedeconomies replace outdated technology and makegreater use of IT services, IT markets in emergingcountries could stabilize as well. However, IDCpredictions of low mobile market growth remainunchanged. IDC therefore estimates the IT marketwill expand 4.1% in 2014 and thus more rapidly thanthe overall economy. The software segment isexpected to grow even by 6.1%.

In the Europe, Middle East, and Africa (EMEA)region, the Western European market for IT couldgrow 2%, in IDC's view. However, the analysts alsoanticipate that the Ukraine crisis will impact theRussian IT market, with an expected decline ofalmost 1% in 2014, impacting other Central andEastern European economies in the process.

In the Americas region, IDC estimates the U.S. ITmarket will expand by 8% in the software segment


and by more than 2% in the IT services segment.The IT market in Latin America, meanwhile, isforecast to expand 8.8% in 2014.

IDC expects market activity in the Asia PacificJapan (APJ) region to be more subdued: It believesthe Japanese IT market could decline byapproximately 1% in 2014, and that barring furthereconomic difficulties, growth not exceeding 10% ispossible on the Chinese IT market.

Trends in the IT Market –Increased IT Spending Year-Over-Year

%World 2013e 2014p 2015pTotal IT 4.5 4.1 4.5

Hardware 4.8 3.8 4.2

Packaged software 7.1 6.1 6.5

Applications 6.8 5.8 6.1

IT services 2.4 3.4 3.7Europe, Middle East,Africa (EMEA)IT total 2.3 2.4 3.2



IT services 1.2 2.9 3.5

AmericasIT total 5.5 4.7 4.9




Asia Pacific JapanIT total 5.5 5.2 5.4




e = Estimate, p = ProjectionSource: IDC Worldwide Black Book Q1 2014

Impact on SAPOrganizations around the world are now entering anew era of business model innovation, madepossible by the convergence of cloud, mobile,social, and in-memory technologies.

However, businesses often contend with layers of ITcomplexity that have been built up over thedecades. This complexity is the result of severalfactors, including the proliferation of hardwareand custom applications. In addition, customers arenot able to respond fast enough to changing marketconditions due to the complexity of the currentconsumption model.In today’s technology industry, the biggest winnershave grown by offering simplicity across their entire

business model. For technology companies inparticular, this has yielded massive user adoption invery short time frames resulting in market success.

We believe that simplicity is the key: By solving thechallenge of business complexity, we can helpunlock our customers’ innovation potential.

With our focus on simplification, we aim to betterinnovate and grow.

By offering our entire portfolio in the SAP Cloudpowered by SAP HANA, we will focus oursimplification on three areas – simplifying ourconsumption model, our portfolio, and userexperience.

With the SAP HANA platform, we have anopportunity to simplify our product portfolio and ITlandscape for our customers. SAP HANA canradically simplify enterprise applications as itcollapses the entire IT stack. With SAP HANA CloudPlatform, we have the ability to take our core on-premise applications to the cloud and offer a choiceof cloud deployments to our customers.

In addition, we will also simplify our business modelthrough end-to-end delivery of industry-specificsolutions that can drive business value andoutcomes. We will continue to build an openecosystem and our partner network to deliver SAPCloud powered by SAP HANA on their cloudinfrastructure. Our ecosystem will play a vital role inbuilding new solutions on the SAP HANA platformand delivering value to our customers.

By investing in innovations and shifting ourcustomers to a cloud business model, we will beable to help reduce their total cost of ownership(TCO) on IT. This enables customers to reinvest theTCO savings in innovations and SAP could capturea higher share of customer IT spend.

Emerging markets will continue to be a growthdriver, with high double-digit growth in software andcloud revenues expected through 2017. In additionto our investments in China, Russia (subject toclose observation of the further political andeconomic developments in Russia), and the MiddleEast, we are expanding our investments in Africa.

Overall, we expect to have sufficient future growthpotential helping us to reach our 2014 outlooktargets and medium-term aspirations, which extendbeyond 2015 and into 2017. Thus, SAP expects tooutperform, with regard to non-IFRS software andsoftware-related service revenue at constantcurrencies, the global economy and the IT industry


in 2014, as long as they develop as currentlyforecasted. For more information, see theOperational Targets for 2014 (Non-IFRS) section.

Forecast for SAP

Operational Targets for 2014 (Non-IFRS)

Revenue and Operating Profit Outlook

As we continue to expand our cloud business, theExecutive Board adjusted the full year outlook forcloud subscriptions and support revenue as follows:

The Company now expects full year 2014 non-IFRScloud subscriptions and support revenue to be in arange of €1,000 – €1,050 million (previously:€950 – €1,000 million) at constant currencies(2013: €757 million). The upper end of this rangerepresents a growth rate of 39%.

The Company continues to expect full year 2014non-IFRS software and software-related servicerevenue to increase by 6% – 8% at constantcurrencies (2013: €14.03 billion).

The Company continues to expect full-year 2014non-IFRS operating profit to be in a range of€5.8 billion – €6.0 billion at constant currencies(2013: €5.48 billion).

While the Company's full-year 2014 businessoutlook is at constant currency, actual currencyreported figures are expected to continue to benegatively impacted by currency exchange ratefluctuations. If exchange rates remain at the June2014 level for the rest of the year, the Companyexpects non-IFRS software and software-relatedservice revenue and non-IFRS operating profitgrowth rates at actual currency to experience anegative currency impact of approximately2 percentage points and 2 percentage pointsrespectively for the third quarter of 2014 and ofapproximately 2 percentage points and2 percentage points respectively in the full year2014.

The above mentioned indication for the expectedcurrency exchange rate impact on actual currencyreported figures replaces the earlier indicationdisclosed on April 17, 2014 in our Interim ReportJanuary – March 2014.

We expect that total revenue growth (non-IFRS) willcontinue to depend largely on the revenue fromsoftware and software-related services. However,the revenue growth we expect from this is below the

outlook provided for cloud subscriptions andsupport revenue (non-IFRS).

We expect our cloud subscriptions and supportmargin (non-IFRS) to improve in the second half of2014 compared to the first half of 2014 (first half of2014: 67%).

Differences Between IFRS andNon-IFRS Measures

As noted above, our guidance is based on non-IFRSmeasures at constant currencies. The followingprovides additional insight into the impact of theconstant currency notion and the items by whichour IFRS measures and non-IFRS measures differ.

The following table shows the estimates of theitems that represent the differences between ournon-IFRS financial measures and our IFRS financialmeasures.

Non-IFRS Measures

€ millions Estimatedamounts for

1/1 –12/31/20141)

ActualAmounts

from 1/1 –6/30/2014

ActualAmounts

from 1/1 –6/30/2013

Deferred revenuewrite-down

<20 5 64

Discontinuedactivities 2)

< 10 1 0

VersataLitigation 2)

289 289 32

Share-basedpaymentexpenses 3),4)

320 to 360 124 109

Acquisition-related charges 5)

520 to 560 261 283

Restructuring 100 to 150 54 31

1) All adjusting items are partly incurred in currencies other thanthe euro. Consequently, the amounts are subject to currencyvolatility. All estimates for 2014 provided in the table are atactual currency and are calculated based on certainassumptions regarding the developments of the differentcurrency exchange rates. Depending on the future developmentof these exchange rates, the total amounts for 2014 may differsignificantly from the estimates provided in the table above. Thereader should remember that SAP’s outlook is based onconstant currency.

2) We will consider all new information that emerges from furtherdevelopments of the TomorrowNow and Versata litigation todetermine if the provision should be adjusted in the future, whichcould result in a change to the respective estimate provided inthe table above.

3) Our share-based payment expenses are subject, among otherfactors, to share price volatility, anticipated achievement offinancial KPI objectives, and fluctuations in SAP’s workforce. Theestimates in the table above are based on certain assumptionsregarding these factors. Depending on how these factors changein the future, the total expense for 2014 may differ significantlyfrom these estimates.


4) The estimates provided above for share-based compensationexpenses include grants under existing programs. New share-based compensation plans or changes to the existing plans maymake the total amounts for 2014 differ significantly from theseestimates.

5) The estimates provided above for acquisition-related chargesare based on the acquisitions performed by SAP until the day ofthis document. Further acquisitions may make the total amountsfor 2014 differ significantly from these estimates.

The company expects a full-year 2014 effective taxrate (IFRS) of 26.0% to 27.0% (2013: 24.4%) andan effective tax rate (non-IFRS) of 27.5% to 28.5%(2013: 25.9%).

Goals for Liquidity, Finance, Investments, andDividendsOur goals for liquidity, finance, investments, anddividends as discussed in our 2013 IntegratedReport have changed as follows:

On June 30, 2014, we had a negative net liquidity.We believe that our liquid assets combined with ourundrawn credit facilities are sufficient to meet ourpresent operating financing needs also in thesecond half of 2014 and, together with expectedcash flows from operations, will support ourcurrently planned capital expenditure requirementsover the near term and medium term. We reducedour financial debt by €586 million in the secondquarter as intended, and currently expect to haverepaid the €500 million acquisition term loan inrespect of the Fieldglass acquisition by the end ofthe first quarter of 2015 at the latest. We willconsider issuing new debt, such as bonds or U.S.private placements, on an as-needed basis only andif market conditions are advantageous. By the timeof this report, we have no concrete plans for futureshare buybacks.

Excepting acquisitions, our planned capitalexpenditures for 2014 and 2015 can be covered infull by operating cash flow. They will mainly bespent on property improvements planned inBangalore (India), Beijing (China), New York City(United States), Paris (France), Potsdam(Germany), and Ra’anana (Israel) and on increasingour data center capacity in Newtown Square(United States) and St. Leon-Rot (Germany).

We plan to continue our dividend policy, which isthat the payout ratio should be more than 30%.

Premises on Which Our Outlook Is BasedIn preparing our outlook guidance, we have takeninto account all events known to us at the time weprepared this report that could influence SAP’sbusiness going forward. Among the premises onwhich this outlook is based are those presented

concerning economic development. This outlookdoes not take into consideration any effects in 2014from major acquisitions.

Medium-Term ProspectsOur medium-term prospects as discussed in our2013 Integrated Report and our 2013 Annual Reporton Form 20-F did not change in the first six monthsof 2014. We continue to strive to increase our totalrevenue to more than €20 billion by 2015 andrevenue from our cloud business, including cloud-related professional services, to approximately€2 billion by 2015.

Looking beyond 2015, we introduced new 2017targets. We now aim to increase total revenue to atleast €22 billion and revenue from our cloudbusiness to €3.0 to €3.5 billion by 2017. We haveretained our non-IFRS operating margin goal of35%. To capture the growth opportunities in thecloud, we now expect this target to be reached by2017 rather than in 2015 as previously stated. Weanticipate the fast-growing cloud business alongwith growth in support revenue will drive a higherproportion of more predictable, recurring revenuein the future.

In addition to our financial goals, we also focus ontwo non-financial targets: Customer loyalty andemployee engagement. We believe it is essentialthat our employees are engaged, drive our success,and support our strategy. Therefore, we planto increase our employee engagement index scoreto 82% by 2015 (2013: 77%). Further, ourcustomers’ satisfaction with the solutions we offeris very important to us. We want our customers tonot only be satisfied, but also see us as a trustedpartner for innovation. We measure this customerloyalty metric using the Net Promoter Score (NPS).For 2014, we have set a target for increasing theNPS by four percentage points (2013: 12.1%).


CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS(Unaudited)

Consolidated Income Statements – Quarter 26Consolidated Statements of Comprehensive Income – Quarter 27Consolidated Income Statements – Half-Year 28Consolidated Statements of Comprehensive Income – Half-Year 29Consolidated Statements of Financial Position – June 30, 2014 30Consolidated Statements of Changes in Equity – Half-Year 31Consolidated Statements of Cash Flows – Half-Year 32

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(1) General Information About Consolidated Interim Financial Statements 33(2) Scope of Consolidation 33(3) Summary of Significant Accounting Policies 33(4) Business Combinations 34(5) Professional Services and Other Service Revenue 34(6) Cost of Software and Software-Related Services 34(7) Employee Benefits Expense and Headcount 35(8) Income Taxes 36(9) Earnings per Share 36(10) Other Financial Assets 37(11) Trade and Other Receivables 37(12) Financial Liabilities 38(13) Deferred Income 38(14) Total Equity 38(15) Contingent Liabilities 39(16) Litigation and Claims 39(17) Share-Based Payments 42(18) Other Financial Instruments 43(19) Segment and Geographic Information 47(20) Related Party Transactions 48(21) Subsequent Events 48

26 CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – QUARTER

For the three months ended June 30€ millions, unless otherwise stated Note 2014 2013 Change

in %Cloud subscriptions and support 241 159 52

Software 957 982 2Support 2,279 2,177 5

Software and support 3,237 3,159 2Software and software-related service revenue 3,478 3,318 5Professional services and other service revenue (5) 673 744 10

Total revenue 4,151 4,062 2

Cost of software and software-related services (6) 698 630 11Cost of professional services and other services 591 609 3Total cost of revenue 1,289 1,240 4Gross profit 2,862 2,822 1Research and development 566 567 0Sales and marketing 1,049 1,059 1General and administration 218 232 6Restructuring 39 17 >100TomorrowNow and Versata litigation 289 33 <-100Other operating income/expense, net 3 9 <-100

Total operating expenses 3,453 3,074 12Operating profit 698 988 29

Other non-operating income/expense, net 4 2 <-100Finance income 47 26 79Finance costs 30 49 39

Financial income, net 17 23 <-100Profit before tax 719 963 25

Income tax TomorrowNow and Versata litigation 76 9 <-100Other income tax expense 239 230 4

Income tax expense (8) 163 239 32Profit after tax 556 724 23

Profit attributable to non-controlling interests 1 0 38Profit attributable to owners of parent 557 725 23

Earnings per share, basic (in €)* (9) 0.47 0.61 23Earnings per share, diluted (in €)* (9) 0.47 0.61 23

* For the three months ended June 30, 2014 and 2013, the weighted average number of shares was 1,194 million (diluted 1,197 million) and1,193 million (diluted: 1,195million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF SAP GROUP – QUARTER

Three months ended June 30€ millions 2014 2013Profit after tax 556 724Items that will not be reclassified to profit and loss

Remeasurements on defined benefit pension plans 2 5Income tax relating to items that will not be reclassified 3 3

Other comprehensive income after tax for items that will not be reclassified to profit and loss 1 2Items that will be reclassified subsequently to profit and loss

Exchange differences on translation 126 319

Available-for-sale financial assets 8 5Cash flow hedges 26 18Income tax relating to items that will be reclassified 14 8

Other comprehensive income after tax for items that will be reclassified to profit and loss 122 304Other comprehensive income net of tax 123 302Total comprehensive income 679 422

– Attributable to owners of parent 680 422 – Attributable to non-controlling interests 1 0



CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – HALF-YEAR

For the six months ended June 30€ millions, unless otherwise stated Note 2014 2013 Change

in %Cloud subscriptions and support 460 296 55

Software 1,581 1,638 4Support 4,492 4,286 5

Software and support 6,072 5,924 3Software and software-related service revenue 6,533 6,220 5Professional services and other service revenue (5) 1,316 1,443 9

Total revenue 7,849 7,663 2

Cost of software and software-related services (6) 1,343 1,234 9Cost of professional services and other services 1,182 1,215 3Total cost of revenue 2,525 2,448 3Gross profit 5,324 5,215 2Research and development 1,116 1,124 1Sales and marketing 2,016 2,034 1General and administration 423 429 1Restructuring 54 31 78TomorrowNow and Versata litigation 290 32 <-100Other operating income/expense, net 4 5 <-100

Total operating expenses 6,428 6,029 7Operating profit 1,421 1,634 13

Other non-operating income/expense, net 7 13 48Finance income 69 56 24Finance costs 61 93 35

Financial income, net 9 37 <-100Profit before tax 1,423 1,584 10

Income tax TomorrowNow and Versata litigation 77 9 <-100Other income tax expense 409 331 23

Income tax expense (8) 332 340 2Profit after tax 1,090 1,244 12

Profit attributable to non-controlling interests 1 0 >100Profit attributable to owners of parent 1,091 1,245 12

Earnings per share, basic (in €)* (9) 0.91 1.04 12Earnings per share, diluted (in €)* (9) 0.91 1.04 12

* For the six months ended June 30, 2014 and 2013, the weighted average number of shares was 1,194 million (diluted 1,197million) and1,193 million (diluted: 1,195million), respectively (treasury stock excluded).



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF SAP GROUP – HALF-YEAR

For the six months ended June 30

€ millions 2014 2013Profit after tax 1,090 1,244Items that will not be reclassified to profit and loss

Remeasurements on defined benefit pension plans 1 3Income tax relating to items that will not be reclassified 1 3

Other comprehensive income after tax for items that will not be reclassified to profit and loss 2 0Items that will be reclassified subsequently to profit and loss

Exchange differences on translation 142 90

Available-for-sale financial assets 17 5Cash flow hedges 34 18Income tax relating to items that will be reclassified 11 2

Other comprehensive income after tax for items that will be reclassified to profit and loss 136 69Other comprehensive income net of tax 138 69

Total comprehensive income 1,228 1,175 – Attributable to owners of parent 1,229 1,175 – Attributable to non-controlling interests 1 0



CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP

as at June 30, 2014 and December 31, 2013€ millions Notes 2014 2013

Cash and cash equivalents 3,123 2,748

Other financial assets (10) 230 251Trade and other receivables (11) 3,614 3,865Other non-financial assets 470 346Tax assets 172 142

Total current assets 7,610 7,352Goodwill 14,380 13,684

Intangible assets 2,907 2,956Property, plant, and equipment 1,847 1,820Other financial assets (10) 726 607Trade and other receivables (11) 80 98Other non-financial assets 105 107Tax assets 192 172

Deferred tax assets 379 292Total non-current assets 20,616 19,736

Total assets 28,226 27,089

as at June 30, 2014 and December 31, 2013€ millions Notes 2014 2013

Trade and other payables 846 850

Tax liabilities 205 433Financial liabilities (12) 580 748Other non-financial liabilities 1,616 2,263

Provision TomorrowNow and Versata litigation 514 223Other provisions 320 422

Provisions 834 645

Deferred income (13) 3,304 1,408Total current liabilities 7,385 6,347

Trade and other payables 50 45Tax liabilities 355 318Financial liabilities (12) 3,791 3,758Other non-financial liabilities 115 112

Provisions 211 278Deferred tax liabilities 102 109Deferred income (13) 63 74

Total non-current liabilities 4,687 4,694Total liabilities 12,072 11,041

Issued capital 1,229 1,229

Share premium 578 551Retained earnings 16,156 16,258Other components of equity 582 718Treasury shares 1,234 1,280

Equity attributable to owners of parent 16,147 16,040Non-controlling interests 7 8

Total equity (14) 16,154 16,048Total equity and liabilities 28,226 27,089



CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY OF SAP GROUP

For the six months ended June 30€ millions Equity Attributable to Owners of Parent Non-

ControllingInterests

TotalEquity

IssuedCapital

SharePremium

RetainedEarnings

Other Components of Equity TreasuryShares

Total

ExchangeDiffe-rences

Available-for-Sale

FinancialAssets

Cash FlowHedges

1/1/2013 1,229 492 13,934 236 22 20 1,337 14,125 8 14,133Profit after tax 1,245 1,245 1,244Other comprehensiveincome 87 5 13 69 69

Comprehensiveincome 1,245 87 5 13 1,175 1,175

Share-basedpayments 25 25 25

Dividends 1,013 1,013 1,013Reissuance oftreasury sharesunder share-basedpayments

4 7 11 11

Other changes 2 2 26/30/2013 1,229 521 14,164 323 27 33 1,330 14,321 8 14,329

1/1/2014 1,229 551 16,258 820 82 20 1,280 16,040 8 16,048Profit after tax 1,091 1,091 1 1,090Other comprehensiveincome 2 144 17 25 138 138

Comprehensiveincome 1,093 144 17 25 1,229 1 1,228

Share-basedpayments 3 3 3

Dividends 1,194 1,194 1,194Reissuance oftreasury sharesunder share-basedpayments

24 47 71 71

Other changes 1 1 16/30/2014 1,229 578 16,156 676 99 5 1,234 16,147 7 16,154



CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP

For the six months ended June 30€ millions 2014 2013Profit after tax 1,090 1,244Adjustments to reconcile profit after taxes to net cash provided by operating activities:

Depreciation and amortization 478 478Income tax expense 332 340Financial income, net 9 37Decrease/increase in sales and bad debt allowances on trade receivables 16 38Other adjustments for non-cash items 52 44

Decrease/increase in trade and other receivables 297 470Decrease/increase in other assets 188 129Decrease/increase in trade payables, provisions, and other liabilities 593 945Decrease/increase in deferred income 1,855 1,735

Cash outflows due to TomorrowNow and Versata litigation 0 1Interest paid 73 80

Interest received 27 33Income taxes paid, net of refunds 709 782Net cash flows from operating activities 2,575 2,482

Business combinations, net of cash and cash equivalents acquired 729 99Purchase of intangible assets and property, plant, and equipment 304 265

Proceeds from sales of intangible assets or property, plant, and equipment 27 23Purchase of equity or debt instruments of other entities 713 1,200Proceeds from sales of equity or debt instruments of other entities 721 1,079Net cash flows from investing activities 998 462

Dividends paid 1,194 1,013

Proceeds from reissuance of treasury shares 27 9Proceeds from borrowings 500 0Repayments of borrowings 586 0Net cash flows from financing activities 1,253 1,004

Effect of foreign exchange rates on cash and cash equivalents 51 107Net decrease/increase in cash and cash equivalents 375 909Cash and cash equivalents at the beginning of the period 2,748 2,477Cash and cash equivalents at the end of the period 3,123 3,386



NOTES TO THE CONSOLIDATED INTERIMFINANCIAL STATEMENTS

(1) General Information About ConsolidatedInterim Financial Statements

The accompanying Consolidated Interim FinancialStatements of SAP SE and its subsidiaries(collectively, “we,” “us,” “our,” “SAP,” “Group,” and“Company”) have been prepared in accordancewith the International Financial ReportingStandards (IFRS) and in particular in compliancewith International Accounting Standard (IAS) 34.The designation IFRS includes all standards issuedby the International Accounting Standards Board(IASB) and related interpretations issued by theIFRS Interpretations Committee (IFRIC). Thevariances between the applicable IFRS standards asissued by the IASB and the standards as used bythe European Union are not relevant to thesefinancial statements.

With effect from July 7, 2014, SAP AG wasconverted to a European Company (SocietasEuropaea, SE), and since this date, the company’slegal form is SAP SE.

Certain information and disclosures normallyincluded in the notes to annual financial statementsprepared in accordance with IFRS have beencondensed or omitted. We believe that thedisclosures made are adequate and that theinformation gives a true and fair view.

Our business activities are influenced by certainseasonal effects. Historically, our overall revenuetends to be highest in the fourth quarter. Interimresults are therefore not necessarily indicative ofresults for a full year.

Amounts reported in previous years have beenreclassified as appropriate to conform to thepresentation in this interim report.

These unaudited condensed Consolidated InterimFinancial Statements should be read in conjunctionwith SAP’s audited Consolidated IFRS FinancialStatements for the Year Ended December 31, 2013,included in our 2013 Annual Report (extract fromour 2013 Integrated Report) and our 2013 AnnualReport on Form 20-F.

Due to rounding, numbers presented throughoutthese Interim Financial Statements may not add upprecisely to the totals we provide and percentagesmay not precisely reflect the absolute figures.

(2) Scope of Consolidation

The following table summarizes the change in thenumber of legal entities included in theConsolidated Financial Statements:

Entities Consolidated in the FinancialStatements

German Foreign TotalJanuary 1, 2013 22 245 267Additions 1 24 25Disposals -1 -19 -20

December 31, 2013 22 250 272Additions 0 5 5Disposals 0 -16 -16June 30, 2014 22 239 261

The additions during the first half of 2014 relate tolegal entities added in connection with acquisitions.The disposals are due to mergers and liquidationsof operating and non-operating legal entities.

Our changes in the scope of consolidation in thefirst half of 2014 were not significant to ourConsolidated Financial Statements.

For more information about our businesscombinations and the effect on our ConsolidatedFinancial Statements, see Note (4) and our AnnualReport for 2013.

(3) Summary of Significant Accounting Policies

The Interim Financial Statements were preparedbased on the same accounting policies as thoseapplied and described in the Consolidated FinancialStatements as at December 31, 2013. Oursignificant accounting policies are summarized inthe Notes to the Consolidated FinancialStatements. For more information, see Note (3) inour Annual Report for 2013.

Newly Adopted Accounting Standards

The new accounting standards (for example theAmendments to IAS 32 (Financial Instruments:Presentation) – Offsetting financial assets andfinancial liabilities) adopted in the first half of 2014did not have a material impact on our ConsolidatedFinancial Statements.

New Accounting Standards Not Yet Adopted

On May 12, 2014, the IASB published amendmentsto IAS 16 (Property, Plant and Equipment) and IAS38 (Intangible Assets). The amendments become


mandatory for the Group’s 2016 ConsolidatedFinancial Statements and clarifythat – in general – the use of revenue-basedmethods to calculate the depreciation /amortization is not appropriate (this presumption,however, can be rebutted in certain limitedcircumstances for intangibles). We have not yetcompleted the determination of the impact on ourConsolidated Financial Statements.

On May 28, 2014, the IASB issued IFRS 15 (Revenuefrom Contracts with Customers). The standardbecomes effective in fiscal year 2017 with earlierapplication permitted. We are in the early stage ofan analysis of the impact of the standard on ourConsolidated Financial Statements. This impactcould be material, in particular in the areas ofallocating revenue to the different performanceobligations under one contract and the timing ofrevenue recognition. The standard foreseesdifferent alternative approaches for the adoption ofthe new guidance. We have not yet taken a decisionwhich of these alternatives we intend to apply.

For more information about new accountingstandards not yet adopted, see Note (3) in ourAnnual Report for 2013.

(4) Business Combinations

We acquired the following businesses in the firsthalf of 2014.

Acquired Businesses

AcquiredBusinesses

Sector Acquisi-tionType

AcquiredVotingInterest

Acquisi-tionDate

Fieldglass, Inc.,Chicago, Illinois,USA

Provider ofSaaS solutiontoorganizationsto procure andmanage theirflexibleworkforces

ShareDeal

100% May 2,2014

SeeWhy, Inc.,Boston,Massachusetts,USA

Provider ofbehavioralmarketingsoftware

ShareDeal

100% June 13,2014

We acquire businesses in specific areas of strategicinterest to us. All of the acquisitions listed in the

above table are neither individually nor in aggregatematerial to SAP.

For some acquisitions, for example hybris, we arestill in the measurement period of 12 months afterthe acquisition date. Accordingly, some amountsrecognized in our financial statements for theseitems might still be regarded provisional.

Acquisitions made in the preceding year, includingthe acquisition of hybris on August 1, 2013, aredescribed in the Consolidated Financial Statementsin our 2013 Annual Report.

(5) Professional Services and Other ServiceRevenue

Professional services and other service revenuecomprises the following:

Professional Services and Other ServiceRevenue

€ millions Q2 2014 1/1-6/30/

2014

Q2 2013 1/1-6/30/

2013Consulting 520 1,028 580 1,136

Other services 153 288 165 306Professionalservices andother service

673 1,316 744 1,443

The item includes professional services and otherservice revenue related to our cloud offerings of€54 million in the second quarter 2014 and€98 million in the first half of 2014 (Q2 2013: €39million; first half of 2013: €82 million).

(6) Cost of Software and Software-RelatedServices

Cost of software and software-related service was€698 million in the second quarter of 2014 and€1,343 million in the first half of 2014 (Q2 2013:€630 million; first half of 2013: €1,234 million).Theitem includes cost of cloud subscriptions andsupport revenue of €105 million in the secondquarter 2014 and €188 million in the first half of2014 (Q2 2013: €71 million; first half of 2013: €154million).


(7) Employee Benefits Expense and Headcount

Employee benefits expense comprises the following:

Employee Benefits Expense

€ millions Q2 2014 1/1-6/30/2014

Q2 2013 1/1-6/30/2013

Salaries 1,549 3,015 1,530 2,929Social security expense 217 457 203 441Share-based payment expenses 76 124 39 109Pension expense 53 113 50 114

Employee-related restructuring expenses 38 51 17 23Termination benefits 4 12 9 21Employee Benefits Expense 1,937 3,773 1,848 3,637

Acquired companies are only included in the employee benefits expense as of the company’s acquisition date.hybris is therefore not included in prior year numbers.

On June 30, 2014, the breakdown of our full-time equivalent employee numbers by function and by region wasas shown in the table below. The increase in headcount in the SAP Group to 67,008 employees is mainly due toadditions from business combinations (especially hybris).

Number of Employees (in Full-Time Equivalents)

June 30, 2014 June 30, 2013Full-Time Equivalents EMEA Americas APJ Total EMEA Americas APJ TotalSoftware and software-related services 5,126 3,098 3,707 11,930 4,622 2,739 3,350 10,711

Professional services and other services 7,136 4,432 2,919 14,487 6,916 4,388 2,892 14,197Research and development 8,907 3,652 5,515 18,074 8,525 3,516 5,334 17,374Sales and marketing 6,593 6,208 3,173 15,974 6,301 6,498 3,050 15,849General and administration 2,421 1,441 758 4,620 2,285 1,417 661 4,363Infrastructure 1,431 816 319 2,566 1,309 823 312 2,443SAP Group (June 30) 31,614 19,647 16,391 67,651 29,957 19,380 15,600 64,937Thereof acquisitions 49 324 15 388 48 221 0 269SAP Group (average first half) 31,293 19,582 16,133 67,008 29,866 19,296 15,593 64,756


The allocations of expenses for share-basedpayments to the various expense items are asfollows:

Share-Based Payments

€ millions Q2 2014 1/1 –6/30/

2014

Q2 2013 1/1 –6/30/

2013Cost of softwareand software-related services

10 15 4 13

Cost ofprofessionalservicesand other services

15 23 8 20

Research anddevelopment

21 31 14 33

Sales andmarketing

22 34 10 31

General andadministration

8 21 3 12

Share-basedpayments

76 124 39 109

(8) Income Taxes

In the second quarter and the first half of 2014,income taxes and the effective tax rate, eachcompared with the second quarter and the first halfof 2013, were as follows:

Income Taxes

€ millions, unlessstated otherwise

Q2 2014 1/1 –6/30/

2014

Q2 2013 1/1 –6/30/

2013Profit beforeincome tax

719 1,423 963 1,584

Income taxexpense

163 332 239 340

Effective taxrate (in %)

22.6 23.4 24.8 21.5

We are subject to ongoing tax audits by domestic andforeign tax authorities. Currently, we are mainly indispute with the German and the Brazilian taxauthorities. The German dispute is in respect ofintercompany financing matters while the Braziliandispute is in respect of the license fee deductibility. Inboth cases, we expect that we will need to initiatelitigation to prevail. For both of these matters, wehave not recorded a provision as we believe that thetax authorities’ claims have no merit and that noadjustment is warranted. If, contrary to our view, thetax authorities were to prevail in their argumentsbefore the court, we would expect to have anadditional tax expense (including related interestexpenses and penalties) of approximately €668million in total.

(9) Earnings per Share

Earnings per Share

€ millions, unless otherwise stated Q2 2014 1/1–6/30/2014

Q2 2013 1/1–6/30/2013

Profit attributable to equity holders of SAP SE 557 1,091 725 1,245Issued ordinary shares1) 1,229 1,229 1,229 1,229Effect of treasury shares1) 34 34 36 36

Weighted average shares outstanding, basic1) 1,194 1,194 1,193 1,193Dilutive effect of share-based payments1) 3 3 2 2Weighted average shares outstanding, diluted1) 1,197 1,197 1,195 1,195Earnings per share, basic, attributable to equity holders of SAP SE (in€)

0.47 0.91 0.61 1.04

Earnings per share, diluted, attributable to equity holders of SAP SE(in €)

0.47 0.91 0.61 1.04

1) Number of shares in millions


(10) Other Financial Assets

Other financial assets comprise the following:

Other Financial Assets

June 30, 2014€ millions Current Non-Current TotalLoans and otherfinancialreceivables

75 266 341

Debt investments

30 0 30

Equity investments

0 383 383

Available-for-salefinancial assets

30 383 413

Derivatives 125 42 167

Investments inassociates

0 35 35

Total 230 726 957

December 31, 2013€ millions Current Non-Current TotalLoans and otherfinancialreceivables

90 243 333

Debt investments

38 0 38

Equity investments

0 322 322

Available-for-salefinancial assets

38 322 360

Derivatives 123 6 129Investments inassociates

0 36 36

Total 251 607 858

(11) Trade and Other Receivables

Trade and other receivables comprise the following:

Trade and Other Receivables

June 30, 2014€ millions Current Non-Current TotalTrade receivables,net

3,573 4 3,577

Other receivables 42 76 117

Total 3,614 80 3,694

December 31, 2013€ millions Current Non-Current TotalTrade receivables,net

3,802 14 3,816

Other receivables 63 84 147Total 3,865 98 3,963

The carrying amounts of our trade receivables andrelated allowances were as follows:

Carrying Amounts of Trade Receivables

€ millions 6/30/2014

12/31/2013

Gross carrying amount 3,731 3,954

Sales allowances charged to revenue 106 96Allowance for doubtful accountscharged to expense

48 42

Carrying amount trade receivables,net

3,577 3,816


(12) Financial Liabilities

Financial liabilities comprise the following:

Financial Liabilities

June 30, 2014Nominal Volume Carrying Amount

€ millions Current Non-Current Current Non-Current TotalBank loans 500 0 500 0 500Private placement transactions 0 1,940 0 1,935 1,935Bonds 0 1,800 0 1,813 1,813

Financial debt 500 3,740 500 3,748 4,248Other financial liabilities NA NA 80 43 123Financial liabilities 580 3,791 4,371

December 31, 2013Nominal Volume Carrying Amount

€ millions Current Non-Current Current Non-Current TotalBank loans 0 0 0 0 0Private placement transactions 86 1,922 86 1,891 1,977Bonds 500 1,800 500 1,791 2,291

Financial debt 586 3,722 586 3,682 4,268Other financial liabilities NA NA 162 76 238Financial liabilities 748 3,758 4,506

(13) Deferred Income

On June 30, 2014, our current deferred income was€3,304 million (December 31, 2013: €1,408 million)and our non-current deferred income was €63million (December 31, 2013: €74 million). On June30, 2014, current deferred income includes a totalof €445 million in deferred revenue (December 31,2013: €443 million; June 30, 2013: €354 million),which in future will likely be recognized as revenuefrom cloud subscriptions and support.

(14) Total Equity

Issued Shares

On June 30, 2014, SAP SE had 1,228,504,232 no-par issued shares (December 31, 2013:1,228,504,232) issued with a calculated nominalvalue of €1 per share. Thus, issued shares remainunchanged in the first half of 2014.

Treasury Shares

On June 30, 2014, we held 34 million treasuryshares, representing €34 million or 2.7% of capitalstock.

In the first half of 2014, we did not acquire sharesfor treasury, 1.3 million (Q2 2014: 1.2 million) shareswere disposed at an average price of approximately€36.79 (Q2 2014: €36.79) per share.

In the first half of 2013, we did not acquire sharesfor treasury, 0.2 million (Q2 2013: 0.1 million)shares were disposed at an average price ofapproximately €36.80 (Q2 2013: €36.80) pershare.

Share sales in 2014 and 2013 were in connectionwith our share-based payments, which aredescribed in Note (27) in the Annual Report for2013.

Other Comprehensive Income

The component of other comprehensive incomebefore tax that will be reclassified to profit or loss inthe future includes the following items for thesecond quarter:


€ millions Q2 2014 Q2 2013Gains (losses) on exchangedifferences on translation

126 319

Reclassification adjustments onexchange differences on translation

0 0

Exchange differences on translation 126 319Gains (losses) on remeasuringavailable-for-sale financial assets

8 5

Reclassification adjustments onavailable-for-sale financial assets

0 0

Available-for-sale financial assets 8 5Gains (losses) on cash flow hedges 22 37Reclassification adjustments on cashflow hedges

4 19

Cash flow hedges 26 18

The component of other comprehensive incomebefore tax that will be reclassified to profit or loss inthe future includes the following items for the firsthalf year:

€ millions 1/1–6/30/201

4

1/1–6/30/201

3Gains (losses) on exchangedifferences on translation

142 90

Reclassification adjustments onexchange differences on translation

0 0

Exchange differences on translation 142 90Gains (losses) on remeasuringavailable-for-sale financial assets

19 5

Reclassification adjustments onavailable-for-sale financial assets

2 0

Available-for-sale financial assets 17 5Gains (losses) on cash flow hedges 20 50

Reclassification adjustments on cashflow hedges

14 32

Cash flow hedges 34 18

(15) Contingent Liabilities

For a detailed description of our contingentliabilities, see Note (22) in our 2013 Annual Report,Notes to the Consolidated Financial Statementssection. There have been no significant changes incontingent liabilities since December 31, 2013.

For information about contingent liabilities relatedto litigation, see Note (16).

(16) Litigation and Claims

We are subject to a variety of claims and lawsuitsthat arise from time to time in the ordinary courseof our business, including proceedings and claimsthat relate to companies we have acquired, claimsthat relate to customers demandingindemnification for proceedings initiated againstthem based on their use of SAP software, andclaims that relate to customers’ being dissatisfiedwith the products and services that we have

delivered to them. We will continue to vigorouslydefend against all claims and lawsuits against us.We record a provision for such matters when it isprobable that we have a present obligation thatresults from a past event, is reliably estimable, andthe settlement of which is probable to require anoutflow of resources embodying economic benefits.For the TomorrowNow and the Versata litigation,we have recorded provisions of US$306 million(US$306 million on December 31, 2013) andUS$394 million (US$0 million on December 31,2013), respectively. We currently believe thatresolving all other claims and lawsuits against us,individually or in the aggregate, did not and will nothave a material adverse effect on our business,financial position, profit, or cash flows.Consequently, the provisions currently recorded forthese other claims and lawsuits are neitherindividually nor in aggregate material to SAP.

However, the outcome of litigation and other claimsor lawsuits is intrinsically subject to considerableuncertainty. Management’s view of the litigationmay also change in the future. Actual outcomes oflitigation and other claims or lawsuits may differfrom the assessments made by management inprior periods, which could result in a materialimpact on our business, financial position, profit,cash flows, or reputation. Most of the litigations andclaims are of a very individual nature and claims areeither not quantified by the claimants or claimamounts quantified are, based on historicalevidence, not expected to be a good proxy for theexpenditure that would be required to settle thecase concerned. The specifics of the jurisdictionswhere most of the claims are located further impairthe predictability of the outcome of the cases.Therefore, it is not practicable to reliably estimatethe financial effect that these litigations and claimswould have if SAP were to incur expenditure forthese cases.

For more information about the provisions recordedfor litigation, see our 2013 Annual Report, Notes tothe Consolidated Financial Statements section,Note (18b).

Among the claims and lawsuits are the following:

Intellectual Property Litigation

In March 2007, United States-based OracleCorporation and certain of its subsidiaries (Oracle)instituted legal proceedings in the United Statesagainst TomorrowNow, Inc., its parent companySAP America, Inc. and SAP America’s parentcompany SAP SE (SAP). Oracle filed severalamended complaints between 2007 and 2009. As


amended, the lawsuit alleges copyrightinfringement, violations of the Federal ComputerFraud and Abuse Act and the California ComputerData Access and Fraud Act, unfair competition,intentional and negligent interference withprospective economic advantage, and civilconspiracy. The lawsuit alleges that SAP unlawfullycopied and misappropriated proprietary,copyrighted software products and otherconfidential materials developed by Oracle toservice its own customers. The lawsuit soughtinjunctive relief and monetary damages, includingpunitive damages, alleged by Oracle to be in thebillions of U.S. dollars. The trial was held inNovember 2010. Prior to trial, SAP SE, SAPAmerica and TomorrowNow stipulated to liabilityfor certain claims and SAP agreed to pay OracleUS$120 million for attorneys’ fees. After the trial,the jury returned a damages verdict of US$1.3billion. The judgment, which was issued on February3, 2011, additionally provided for prejudgmentinterest of US$15 million. The judgment amount isalso subject to post-judgment interest, whichaccrues from the time judgment is entered.

The jury based its verdict on the theory of ahypothetical license, that is, the value of whatTomorrowNow would have paid if it had negotiatedwith Oracle a license for the copyrights infringed byTomorrowNow. Before and during the course of thetrial, various damages amounts had been presentedby the parties to the litigation. They included thefollowing:a) Before the trial, Oracle had requested damagesin excess of US$3.5 billion based on alleged “savedacquisition costs,” the court dismissed that damageclaim based on a pretrial motion, but Oracle has theright to appeal that dismissal.b) During the trial, Oracle’s damages expertspresented an amount of US$408 million based onlost profits and disgorgement of infringer’s profit.c) During the trial, members of Oracle managementpresented, as part of their testimonies, amounts ofup to US$5 billion. Oracle’s damages expertpresented a damages estimate of “at least”US$1.655 billion under a hypothetical licensetheory. Oracle’s counsel asked the jury to award“somewhere between US$1.65 and US$3 billion.”d) During the trial, the damages expert forTomorrowNow and SAP presented an amount ofUS$28 million based on lost profits and infringer’sprofits or, alternatively, US$40.6 million based on ahypothetical license theory. Counsel for SAP andTomorrowNow asked the jury to award US$28million.

We believed both before and during the trial andcontinue to believe that the hypothetical license

theory is not an appropriate basis for calculatingthe damages. Instead, we believe that damagesshould be based on lost profits and infringer’sprofits. As such, SAP filed post-trial motions askingthe judge to overturn the judgment. A hearing onthe post-trial motions was held in July 2011. OnSeptember 1, 2011, the trial judge issued an orderwhich set aside the jury verdict and vacated thatpart of the judgment awarding US$1.3 billion indamages. The trial judge also gave Oracle thechoice of accepting reduced damages of US$272million or having a new trial based on lost profitsand infringer's profits. Oracle filed a motion seekingan early appeal from the ruling vacating the jury'sdamages award, which was denied by the judge.Consequently, Oracle elected to proceed with a newtrial. In lieu of a new trial, the parties stipulated to ajudgment of US$306 million while each preservingall rights for appeal. Both parties have filed theirrespective notice of appeal. On appeal, Oracle isseeking three forms of relief: (1) reinstatement ofthe November 2010 US$1.3 billion verdict; (2) as afirst alternative, a new trial at which Oracle mayagain seek hypothetical license damages (based inpart on evidence of alleged saved developmentcosts) plus SAP's alleged infringer's profits withoutany deduction of expenses (Oracle does not put anumber on its claim for the requested new trial);and (3) as a second alternative, increase of theremittitur (alternative to new trial) to US$408.7million (versus the US$272 million Oracle hadpreviously rejected). SAP has dismissed its cross-appeal. The hearing was held on May 13, 2014. Adecision is expected later this year, perhaps evenlater.

Additionally, in June 2007, SAP became aware thatthe United States Department of Justice (U.S. DOJ)had opened an investigation concerning relatedissues and had issued subpoenas to SAP andTomorrowNow. The DOJ investigation has beenresolved by way of a plea agreement which includesTomorrowNow pleading guilty to 11 counts ofviolations of the Computer Fraud and Abuse Act,one count of criminal copyright infringement, thepayment of a US$20 million fine and three years’probation. No charges were brought against SAPSE or subsidiaries thereof other thanTomorrowNow.

In April 2007, United States-based VersataSoftware, Inc. (formerly Trilogy Software, Inc.)(Versata) instituted legal proceedings in the UnitedStates District Court for the Eastern District ofTexas against SAP. Versata alleged that SAP’sproducts infringe one or more of the claims in eachof five patents held by Versata. In its complaint,Versata sought unspecified monetary damages and


permanent injunctive relief. The first trial was heldin August 2009. The jury returned a verdict in favorof Versata and awarded Versata US$138.6 millionfor past damages. In January 2011, the courtvacated the jury’s damages award and ordered anew trial on damages. The retrial was held in May2011. The jury returned a verdict in favor of Versataand awarded Versata US$345 million for pastdamages. In September 2011, the judge deniedSAP’s post-trial motions with the exception ofreducing the damages verdict by US$16 million toapproximately US$329 million. The judge alsoordered approximately US$60 million in pre-judgment interest. Additionally, the judge grantedVersata’s request for a broad injunction whichprohibits SAP from 1) selling products in the UnitedStates with the infringing functionality, 2) providingmaintenance to or accepting maintenance revenuefrom existing customers in the United States untilsuch customers disable the infringing functionalityand verify such disablement, and 3) licensingadditional users to existing customers in the UnitedStates until such customers disable the infringingfunctionality and verify such disablement. Finally,the judge stayed the injunction pending theoutcome of an appeal.

Both parties appealed to the U.S. Court of Appealsfor the Federal Circuit. The appeal hearing occurredin February 2013 and a decision was issued on May1, 2013. The three-judge panel ruled in Versata’sfavor on infringement and damages, leaving bothfully intact. The past damages verdict currentlystands at approximately US$390 million. Regardingthe injunction, the court ruled that the injunctionwas too broad, stating that SAP should be able toprovide maintenance or additional seats for priorcustomers of the infringing products, so long as themaintenance or the additional seat does not involve,or allow access to, the “enjoined capability” whereenjoined capability is defined as the capability toexecute a pricing procedure using hierarchicalaccess of customer and product data. SAP filed apetition seeking rehearing by the three-judge panelthat issued this decision and/or by the entireappeals court. The appeals court requested thatVersata respond to SAP’s petition no later than July29, 2013. In August 2013, the appeals court deniedSAP’s request for rehearing and issued its mandatepassing jurisdiction to the district court.

Separately, SAP filed a petition with the UnitedStates Patent and Trademark Office (USPTO)challenging the validity of the asserted Versatapatent. In January 2013, the USPTO granted SAP’srequest to reconsider the validity of Versata’spatent and instituted the relevant procedure(transitional post grant review). A decision was

issued in June 2013 rendering all challenged patentclaims (including all the patent claims SAP wasfound to have infringed) unpatentable. Versata filedwith the USPTO a request seeking reconsiderationof the decision on six different grounds. The USPTOinvited SAP to file an opposition responding to twoof the six grounds. On September 13, 2013, theUSPTO denied Versata’s request forreconsideration. In November, 2013, Versatasought appeals court review of the USPTO decision.That appeal is fully briefed and the parties awaitannouncement of a hearing date.

In June 2013, following the determination ofunpatentability, SAP filed a request with theappeals court to stay the litigation pending reviewof the USPTO decision. That request was denied inearly July 2013.

In December 2013, SAP filed with the United StatesSupreme Court a petition for a writ of certiorari toreview the decisions of the appeals court. Thatpetition was denied in January 2014. Immediatelythereafter, Versata requested that the DistrictCourt dismiss its remaining claims for injunctiveand equitable relief. The District Court granted thatrequest and deemed the previously enteredjudgment final. On that same day, SAP requestedthat the District Court vacate the judgment or staythe litigation, based on the USPTO decisiondeclaring Versata’s patent claims unpatentable.Versata requested an order requiring SAP to paythe judgment. In April, 2014, the District Courtdenied SAP’s motion to vacate the judgment or staythe litigation. SAP filed an appeal seeking review ofthat district court decision. On motion by Versata,the appeals court dismissed SAP’s appeal in June2014. On June 30, 2014, SAP filed a motion with theappeals court to stay issuance of its mandate. Thatmotion is pending at the appeals court. Versata’srequest for an order requiring SAP to pay thejudgment remains undecided at the District Court.

In February 2010, United States-based TecSec, Inc.(TecSec) instituted legal proceedings in the UnitedStates against SAP, Sybase, IBM, and many otherdefendants. TecSec alleged that SAP’s andSybase’s products infringe one or more of theclaims in five patents held by TecSec. In itscomplaint, TecSec seeks unspecified monetarydamages and permanent injunctive relief. The trialhas not yet been scheduled. The legal proceedingswere stayed against all defendants pending adecision from the U.S. Supreme Court on SAP’s andother defendants’ request for review. SupremeCourt review was declined in June, 2014. We expectthe lawsuit to resume at the district court in thecoming months.


In April 2010, SAP instituted legal proceedings (aDeclaratory Judgment action) in the United Statesagainst Wellogix, Inc. and Wellogix TechnologyLicensing, LLC (Wellogix). The lawsuit seeks adeclaratory judgment that five patents owned byWellogix are invalid and/or not infringed by SAP.The trial has not yet been scheduled. The legalproceedings have been stayed pending theoutcome of six reexaminations filed with theUSPTO. In September 2013, the USPTO issued adecision on four of the six reexaminations,invalidating every claim of each of the four patents.SAP is awaiting a decision on the two remainingreexamination requests. In response to SAP’spatent DJ action, Wellogix has re-asserted tradesecret misappropriation claims against SAP (whichhad previously been raised and abandoned). SAPhas filed a motion for an early dispositive decisionon the trade secret claims, and we expect the courtto issue a decision on that motion later this year.

In August 2007, United States-basedelcommerce.com, Inc. (elcommerce) institutedlegal proceedings in the United States against SAP.elcommerce alleged that SAP’s products infringeone or more of the claims in one patent held byelcommerce. In its complaint, elcommerce soughtunspecified monetary damages and permanentinjunctive relief. The court in East Texas grantedSAP’s request to transfer the litigation from EastTexas to Pennsylvania. Subsequent to the Markmanruling by the court, the parties agreed to the entryof final judgment regarding non-infringement bySAP of the method claims of the patent andinvalidity of the system claims. elcommerce hasappealed the court’s Markman ruling. The hearingfor the appeal was held in May 2012. SAP also filed areexamination request with the USPTO to invalidateelcommerce’s patent. On September 23, 2013, theUSPTO issued a decision invalidating the patent.elcommerce sought rehearing from the USPTO, butthat request was denied in March, 2014. TheFederal Circuit appeals court also issued a decisionin February, 2014, confirming that SAP did notinfringe some claims of the elcommerce patent, butreversing the district court’s decision of invalidity ofthe patent. SAP has asked the Federal Circuit courtto reconsider its invalidity decision. In June 2014,elcommerce and SAP jointly moved to dismiss theappeal on the Federal Circuit court. The legaldispute is thus closed.

Other Litigation

In April 2008, South African-based SystemsApplications Consultants (PTY) Limited (Securinfo)instituted legal proceedings in South Africa againstSAP. Securinfo alleges that SAP has caused one ofits subsidiaries to breach a software distributionagreement with Securinfo. In its complaint,Securinfo seeks damages of approximately€610 million plus interest. In September 2009, SAPfiled a motion to dismiss which was rejected. A trialdate which was scheduled for June 2011 has beenpostponed.

In November 2012, SAP filed a motion to dismissbased on a procedural aspect of the case. The courtfollowed SAP’s argument and dismissed the claimby Securinfo. Securinfo appealed against thisdecision on December 19, 2012.

In March 2013, the court dismissed Securinfo’sappeal. Securinfo appealed against this decision tothe Supreme Court of South Africa. The SupremeCourt granted leave to appeal to the full bench ofthe court which had originally dismissed Securinfo’sappeals. Securinfo has applied for an appealhearing date. The court has not yet provided a date.

We are subject to ongoing audits by domestic andforeign tax authorities. Along with many othercompanies operating in Brazil, we are involved invarious proceedings with Brazilian authoritiesregarding assessments and litigation matters onnon-income taxes on intercompany royaltypayments and intercompany services. The totalpotential amount related to these matters for allapplicable years is approximately €97 million. Wehave not recorded a provision for these matters, aswe believe that we will prevail on these matters.

For more information about income tax risk-relatedlitigation, see Note (8).

(17) Share-Based Payments

For a detailed description of our share-basedpayment plans, see Note (27) in our 2013 AnnualReport, Notes to the Consolidated FinancialStatements section.

Share Matching Plan 2014 (SMP 2014)

Under the SMP 2014, SAP offered its employees theopportunity to purchase SAP SE shares at adiscount of 40%. The number of SAP shares aneligible employee was able to purchase was limitedto a percentage of the employee’s annual basesalary. After a holding period of three years, the


employees receive one SAP share free of charge forevery three shares held. The terms for the GlobalExecutives are different. Instead of receiving adiscount, Global Executives are granted two bonusshares for every three shares acquired and heldduring the three-year vesting period. In June 2014,the participants purchased 1.5 million SAP shares inaggregate at a discounted share price of €33.41.The discount of €35 million was expensedimmediately. The fair value of the right to a bonusshare was estimated on the grant date (June 4,2014) at €52.49 per share, using a risk-free interestrate of 0.13%, a dividend yield of 1.87%, and anexpected life of three years.

The outstanding bonus shares under the ShareMatching Plan are as follows:

Outstanding Restricted Shares

Number in thousands 6/30/2014

12/31/2013

Share Matching Plan 2011(Bonus shares)

0 429


2,895 2,983


554 572


567 0

Stock Option Plan 2010 (2014 Tranche)

Under the Stock Option Plan 2010 (2014 Tranche),we granted 9.0 million cash-based virtual stockoptions to Global Executives and to SAP’s TopRewards in 2014.

The vesting period is three years and thecontractual term of the program is six years. Theexercise price is €60.96 and the fair value on thegrant date was €8.49.

(18) Other Financial Instruments

A detailed overview of our other financialinstruments, financial risk factors, and themanagement of financial risks are presented inNotes (24) to (26) to our Consolidated FinancialStatements for 2013, which are included in our 2013Integrated Report, and our 2013 Annual Report onForm 20-F.

In the following, we disclose the fair value offinancial instruments, valuation techniques andinputs used and the level of the fair value hierarchywithin which the fair value measurements arecategorized.

Fair Value of Financial Instruments

We use various types of financial instruments in theordinary course of business which are grouped intothe following categories: Loans and receivables(L&R), available-for-sale (AFS), held-for-trading(HFT), and amortized cost (AC). The table belowshows the carrying amounts and fair values offinancial assets and liabilities by category offinancial instrument as well as by category of IAS39. Since the line items “Trade receivables,” “Tradepayables,” and “Other financial assets” containboth financial and non-financial assets or liabilities(such as other taxes or advance payments), thenon-financial assets or liabilities are shown in thecolumn headed “Not in Scope of IFRS 7” to allow areconciliation to the corresponding line items in theConsolidated Statements of Financial Position. Thecarrying amounts and fair values of our financialinstruments as of the reporting date, were asfollows:


Fair Values of Financial Instruments

€ millions 2014BookValue

6/30/2014

Measurement Categories Fair Value6/30/

2014

Not inScope of

IFRS 7

Category AtAmortized

Cost

At Cost At FairValue

Assets

Cash and cash equivalents L&R 3,123 3,123 3,123

Trade receivables L&R 3,694 3,577 3,577 117

Other financial assets 957

Debt investments L&R/AFS 30 30

Equity investments AFS/- 0 383 383 35

Other non-derivative financial assets L&R 208 208 132

Derivative assets

With hedging relationship - 44 44

Without hedging relationship HFT 123 123

Liabilities

Trade payables AC 896 645 645 251

Financial liabilities 4,371

Non-derivative financial liabilities AC 4,303 4,454

Derivative liabilities



Total financial instruments, net 2,507 1,960 0 513 2,322 34

Aggregation according to IAS 39

Financial assetsAt fair value through profit or loss HFT 123 123 123

Available-for-sale AFS 413 0 413 413

Loans and receivables L&R 7,025 6,908 6,908 117

Financial liabilities

At fair value through profit or loss HFT 56 56 56

At amortized cost AC 5,199 4,948 5,099 251

Outside scope of IAS 39Financial instruments related to employee benefitplans

132 132

Investment in associates 35 35

Derivatives with hedging relationship 32 32 32



€ millions 2013BookValue

12/31/2013

Measurement Categories Fair Value12/31/

2013

Not inScope of

IFRS 7

Category AtAmortized

Cost

At Cost At FairValue

Assets

Cash and cash equivalents L&R 2,748 2,748 2,748

Trade receivables L&R 3,963 3,816 3,816 147

Other financial assets 858

Debt investments L&R/AFS 38 38

Equity investments AFS/- 0 322 322 36

Other non-derivative financial assets L&R 214 214 119

Derivative assets



Liabilities

Trade payables AC 895 640 640 255

Financial liabilities 4,506

Non-derivative financial liabilities AC 4,336 4,439

Derivative liabilities




Aggregation according to IAS 39

Financial assetsAt fair value through profit or loss HFT 94 94 94

Available-for-sale AFS 360 0 360 360

Loans and receivables L&R 6,925 6,778 6,778 147

Financial liabilities

At fair value through profit or loss HFT 144 144 144

At amortized cost AC 5,231 4,976 5,079 255

Outside scope of IAS 39

Financial instruments related to employee benefitplans

119 119

Investment in associates 36 36

Derivatives with hedging relationship 9 9 9


Determination of Fair ValueA detailed overview of the determination of fair value,the respective inputs as well as the classification ofour other financial instruments into the fair valuehierarchy of IFRS 13 are presented in Note (26) toour Consolidated Financial Statements for 2013,which are included in our 2013 Integrated Report,and our 2013 Annual Report on Form 20-F.

The following table allocates those financial assetsand liabilities that are measured at fair value inaccordance with IAS 39 either through profit or lossor other comprehensive income as of the reportingdate, to the three levels of the fair value hierarchyaccording to IFRS 13.


Classification of Financial Instruments

June 30, 2014 December 31, 2013€ millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Financial assetsCorporate bonds 21 0 0 21 29 0 0 29Government securities 2 0 0 2 2 0 0 2Municipal bonds 7 0 0 7 7 0 0 7

Debt investments 30 0 0 30 38 0 0 38Software industry 96 5 282 383 52 31 239 322

Equity investments 96 5 282 383 52 31 239 322Available-for-sale financial assets 126 5 282 413 90 31 239 360

FX forward contracts 0 69 0 69 0 56 0 56Interest rate swaps 0 40 0 40 0 5 0 5

Call options for share-based payments 0 48 0 48 0 68 0 68Call option on equity shares 0 0 10 10 0 0 0 0

Derivative financial assets 0 157 10 167 0 129 0 129Total 126 162 292 580 90 160 239 489Financial liabilities

FX forward contracts 0 67 0 67 0 147 0 147

Interest rate swaps 0 1 0 1 0 23 0 23Derivative financial liabilities 0 68 0 68 0 170 0 170Total 0 68 0 68 0 170 0 170

It is our policy to recognize transfers at the beginningof the respective period when the event or change incircumstances occurred that caused the transfer.


(19) Segment and Geographic Information

General Information

Our internal reporting system produces reports inwhich information regarding our business activities ispresented in a variety of ways, for example, by line ofbusiness, geography, and areas of responsibility ofthe individual Board members. Based on thesereports, the Executive Board, which is responsible forassessing the performance of our Company and formaking resource allocation decisions as our ChiefOperating Decision Maker (CODM), evaluatesbusiness activities in a number of different ways.

In the first quarter 2014, we took significant steps todrive forward our strategy and our ambition tobecome THE cloud company powered by SAP HANA.To execute this strategy, we merged certain areas ofthe company that performed similar tasks (forexample, the on-premise sales forces with the cloudsales forces, and the on-premise support units withthe cloud support units) to achieve a seamlessorganization of SAP. Since this integration our cloud-related activities are no longer dealt with by separatecomponents in our Company. There are no parts ofour Company that qualify as operating segmentsunder IFRS 8 and our Executive Board assesses thefinancial performance of our Company on anintegrated basis only.

Consequently, with effect from the first quarter of2014 SAP has one single operating segment.

Geographic Information

In the first quarter of 2014, we aligned our revenue byregion disclosures with the changes we made to thestructure of our income statement (see our InterimManagement Report, Report on Economic Position,for details regarding these changes). With the fullintegration of our cloud activities, we furthermorerefined the method of allocating cloud subscriptionrevenues to the different geographies. Comparativeprior period data have been adjusted accordingly.

The amounts for revenue by region in the followingtables are based on the location of customers.

Revenue by Region

Cloud Subscriptions and Support Revenue byRegion

€ millions Q2 2014 1/1–6/30/

2014

Q2 2013 1/1–6/30/

2013EMEA 60 114 41 81

Americas 160 307 103 186

APJ 21 40 15 29

SAP Group 241 460 159 296

Software and Software-Related Service Revenueby Region

€ millions Q2 2014 1/1–6/30/

2014

Q2 2013 1/1–6/30/

2013EMEA 1,632 3,071 1,528 2,878

Americas 1,290 2,471 1,263 2,355

APJ 555 992 527 987

SAP Group 3,478 6,533 3,318 6,220

Total Revenue by Region

€ millions Q2 2014 1/1–6/30/

2014

Q2 2013 1/1–6/30/

2013Germany 597 1,132 593 1,121

Rest of EMEA 1,369 2,602 1,277 2,427

EMEA 1,967 3,734 1,869 3,547

United States 1,162 2,225 1,138 2,123

Rest of Americas 384 740 431 816

Americas 1,546 2,965 1,569 2,939

Japan 134 264 147 299

Rest of APJ 504 886 477 877

APJ 638 1,149 623 1,177

SAP Group 4,151 7,849 4,062 7,663


(20) Related Party Transactions

Certain Executive Board and Supervisory Boardmembers of SAP SE currently hold (or have heldwithin the last year) positions of significantresponsibility with other entities (see our 2013Annual Report, Notes to the Consolidated FinancialStatements section, Note (29)). We haverelationships with certain of these entities in theordinary course of business whereby we buy and sella wide variety of services and products at pricesbelieved to be consistent with those negotiated atarm’s length between unrelated parties.

During the reporting period, we had no related partytransactions that had a material effect on ourbusiness, financial position, or results in the reportingperiod.

For more information about related partytransactions, see our 2013 Integrated Report, Notesto the Consolidated Financial Statements section,Note (30).

(21) Subsequent Events

No events have occurred after June 30, 2014, whichhave a material impact on the Company’sconsolidated financial statements.

Release of the Interim Financial Statements

The Executive Board of SAP SE approved theseConsolidated Interim Financial Statements for theperiod ended June 30, 2014, for issuance on July 16,2014.


RESPONSIBILITY STATEMENT

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financialreporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities,financial position and profit or loss of the SAP-Group, and the interim Management Report of the SAP-Groupincludes a fair review of the development and performance of the business and the position of the SAP-Group,together with a description of the material opportunities and risks associated with the expected development ofthe SAP-Group for the remaining months of the financial year.

Walldorf, July 16, 2014

SAP SEWalldorf, BadenThe Executive Board

Bill McDermott Robert Enslin

Bernd Leukert Luka Mucic

Gerhard Oswald

50 SUPPLEMENTARY FINANCIAL INFORMATION

SUPPLEMENTARY FINANCIAL INFORMATION(UNAUDITED)

RECONCILIATION FROM NON-IFRS NUMBERS TO IFRS NUMBERSThe following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to therespective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rulesor principles.

For the three months ended June 30€ millions, unless otherwise stated 2014 2013 Change in %

IFRS Adj.* Non-IFRS*

CurrencyImpact**

Non-IFRSConstant

Currency**


IFRS Non-IFRS*

Non-IFRSConstant

Currency**Revenue Numbers

Cloud subscriptions and support 241 1 242 12 254 159 24 183 52 32 39Software 957 0 957 29 987 982 0 982 2 2 1Support 2,279 1 2,280 90 2,370 2,177 5 2,182 5 4 9

Software and support 3,237 1 3,238 119 3,357 3,159 5 3,164 2 2 6Software and software-relatedservice revenue

3,478 2 3,480 131 3,611 3,318 29 3,347 5 4 8

Professional services and otherservice revenue

673 0 673 26 699 744 0 744 10 10 6

thereof cloud-related 54 0 54 2 56 39 0 39 39 39 44Total revenue 4,151 2 4,153 157 4,310 4,062 29 4,091 2 2 5

Cloud subscriptions and support 241 1 242 12 254 159 24 183 52 32 39Cloud-related professionalservices revenue

54 0 54 2 56 39 0 39 39 39 44

Cloud revenue 295 1 296 14 310 198 24 222 49 34 40

Operating Expense NumbersCost of software and software-related services

698 86 612 630 76 554 11 10

thereof cloud 105 17 87 71 21 50 47 75Cost of professional services andother services

591 33 559 609 23 586 3 5

Total cost of revenue 1,289 118 1,171 1,240 99 1,140 4 3Gross profit 2,862 120 2,982 2,822 129 2,951 1 1Research and development 566 35 531 567 17 551 0 3Sales and marketing 1,049 43 1,006 1,059 44 1,015 1 1General and administration 218 12 206 232 24 208 6 1Restructuring 39 39 0 17 17 0 >100 0TomorrowNow and Versatalitigation

289 289 0 33 33 0 <-100 0

Other operating income/expense,net

3 0 3 9 0 9 <-100 <-100

Total operating expenses 3,453 536 2,917 119 3,036 3,074 168 2,905 12 0 5


For the three months ended June 30€ millions, unless otherwise stated 2014 2013 Change in %


CurrencyImpact**

Non-IFRSConstant

Currency**


IFRS Non-IFRS*

Non-IFRSConstant

Currency**Profit NumbersOperating profit 698 538 1,236 38 1,273 988 198 1,186 29 4 7Other non-operating income/expense,net

4 0 4 2 0 2 <-100 <-100

Finance income 47 0 47 26 0 26 79 79Finance costs 30 0 30 49 0 49 39 39

Financial income, net 17 0 17 23 0 23 <-100 <-100Profit before tax 719 538 1,257 963 198 1,161 25 8

Income tax TomorrowNow andVersata litigation

76 76 0 9 9 0 <-100 >100

Other income tax expense 239 80 319 230 81 311 4 3Income tax expense 163 156 319 239 72 311 32 3

Profit after tax 556 382 938 724 125 850 23 10Profit attributable to non-controllinginterests

1 0 1 0 0 0 38 38

Profit attributable to owners ofparent

557 382 939 725 125 850 23 10

Key RatiosOperating margin (in %) 16.8 29.8 29.5 24.3 29.0 7.5pp 0.8pp 0.6ppEffective tax rate (in %) 22.6 25.4 24.8 26.8 2.2pp 1.4ppEarnings per share, basic (in €) 0.47 0.79 0.61 0.71 23 10


For the six months ended June 30€ millions, unless otherwise stated 2014 2013 Change in %


CurrencyImpact**

Non-IFRSConstant

Currency**


IFRS Non-IFRS*

Non-IFRSConstant

Currency**Revenue Numbers

Cloud subscriptions and support 460 2 463 22 485 296 54 350 55 32 38Software 1,581 0 1,581 67 1,647 1,638 0 1,638 4 4 1Support 4,492 3 4,495 173 4,667 4,286 10 4,295 5 5 9

Software and support 6,072 3 6,075 239 6,315 5,924 10 5,934 3 2 6Software and software-relatedservice revenue

6,533 5 6,538 261 6,800 6,220 64 6,284 5 4 8

Professional services and otherservice revenue

1,316 0 1,316 56 1,372 1,443 0 1,443 9 9 5

thereof cloud-related 98 0 98 4 102 82 0 82 19 19 24Total revenue 7,849 5 7,854 318 8,172 7,663 64 7,727 2 2 6

Cloud subscriptions and support 460 2 463 22 485 296 54 350 55 32 38Cloud-related professionalservices revenue

98 0 98 4 102 82 0 82 19 19 24

Cloud revenue 558 2 560 26 587 378 54 433 47 30 36

Operating Expense NumbersCost of software and software-related services

1,343 165 1,178 1,234 173 1,060 9 11

thereof cloud 188 36 152 154 58 96 22 58Cost of professional services andother services

1,182 58 1,124 1,215 51 1,164 3 3

Total cost of revenue 2,525 223 2,302 2,448 224 2,224 3 4Gross profit 5,324 228 5,552 5,215 288 5,503 2 1Research and development 1,116 58 1,057 1,124 38 1,086 1 3Sales and marketing 2,016 77 1,939 2,034 96 1,939 1 0General and administration 423 27 396 429 33 396 1 0Restructuring 54 54 0 31 31 0 78 0TomorrowNow and Versatalitigation

290 290 0 32 32 0 <-100 0

Other operating income/expense,net

4 0 4 5 0 5 <-100 <-100

Total operating expenses 6,428 729 5,699 237 5,936 6,029 390 5,639 7 1 5


* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurringrevenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted torecognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items arefor acquisition-related charges, share-based compensation expenses, restructuring expenses, discontinued activities, and the Versatalitigation.** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the currentperiod using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of theprevious year's respective period.

For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web sitewww.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under “Non-IFRS Measures and Estimates”.


For the six months ended June 30€ millions, unless otherwise stated 2014 2013 Change in %


CurrencyImpact**

Non-IFRSConstant

Currency**


IFRS Non-IFRS*

Non-IFRSConstant

Currency**Profit NumbersOperating profit 1,421 735 2,155 81 2,236 1,634 454 2,088 13 3 7Other non-operating income/expense,net

7 0 7 13 0 13 48 48

Finance income 69 0 69 56 0 56 24 24Finance costs 61 0 61 93 0 93 35 35

Financial income, net 9 0 9 37 0 37 <-100 <-100Profit before tax 1,423 735 2,157 1,584 454 2,038 10 6

Income tax TomorrowNow andVersata litigation

77 77 0 9 9 0 <-100 >100

Other income tax expense 409 144 553 331 168 499 23 11Income tax expense 332 221 553 340 159 499 2 11

Profit after tax 1,090 514 1,604 1,244 295 1,539 12 4Profit attributable to non-controllinginterests

1 0 1 0 0 0 >100 >100

Profit attributable to owners ofparent

1,091 514 1,605 1,245 295 1,540 12 4

Key RatiosOperating margin (in %) 18.1 27.4 27.4 21.3 27.0 3.2pp 0.4pp 0.3ppEffective tax rate (in %) 23.4 25.6 21.5 24.5 1.9pp 1.2ppEarnings per share, basic (in €) 0.91 1.34 1.04 1.29 12 4


CALCULATED CLOUD BILLINGSThe following table presents the calculated cloud billings metric which we define as the total of a period's cloud subscription and supportrevenue and of the respective period's change in the deferred cloud subscription and support revenue balance. The table also reconciles thenon-IFRS calculated cloud billings metric (including our non-IFRS at constant currency metric) to the respective IFRS based calculatedcloud billings metric.

* Adjustments in the revenue and deferred revenue line items are for cloud subscriptions and support revenue, and other similarly recurringrevenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted torecognize as revenue under IFRS as a result of business combination accounting rules.* * Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from theprevious year's respective period instead of the current period. Constant currency deferred revenue balances are calculated by translatingthe current period's opening and closing deferred revenue balances as well as the comparative period's closing deferred revenue balanceusing the opening exchange rates of the comparative period.



For the three months ended June 30€ millions, unless otherwise stated 2014 2013


Cur-rency

Impact**

Non-IFRS

Cons-tantCur-

rency**


Cur-rency

Impact**

Non-IFRS

Cons-tantCur-

rency**Cloud subscriptions and support 241 1 242 12 254 159 24 183 0 183

Closing balance deferred cloud subscriptions andsupport

445 3 448 30 478 354 7 361 9 370

Opening balance deferred cloud subscriptions andsupport

451 3 454 37 491 344 33 377 0 377

Change in deferred cloud subscriptions and support 6 0 6 7 13 10 26 16 9 7Calculated cloud billings 235 1 236 5 241 169 2 167 9 176

Year-over-year changes (2014 vs. 2013, in %) 39% 41% 37%


REVENUE BY REGIONThe following tables present our IFRS and non-IFRS revenue by region based on customer location. The tables also present a reconciliationfrom our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue.Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

For the three months ended June 30€ millions 2014 2013 Change in %


CurrencyImpact**

Non-IFRSConstant

Currency**


IFRS Non-IFRS*

Non-IFRSConstant

Currency**Cloud subscriptions and supportrevenue by region

EMEA 60 0 60 2 61 41 0 41 47 47 51Americas 160 1 162 9 170 103 24 127 55 27 34APJ 21 0 21 1 22 15 0 15 38 38 48

Cloud subscriptions and supportrevenue

241 1 242 12 254 159 24 183 52 32 39

Software and software-relatedservice revenue by region

EMEA 1,632 1 1,633 17 1,650 1,528 0 1,528 7 7 8Americas 1,290 2 1,292 77 1,369 1,263 29 1,292 2 0 6APJ 555 0 555 37 592 527 0 527 5 5 12

Software and software-relatedservice revenue

3,478 2 3,480 131 3,611 3,318 29 3,347 5 4 8

Total revenue by regionGermany 597 0 597 0 598 593 0 593 1 1 1Rest of EMEA 1,369 1 1,370 21 1,391 1,277 0 1,277 7 7 9

Total EMEA 1,967 1 1,967 21 1,989 1,869 0 1,869 5 5 6United States 1,162 2 1,163 54 1,217 1,138 29 1,167 2 0 4Rest of Americas 384 0 384 40 424 431 0 431 11 11 2

Total Americas 1,546 2 1,547 94 1,641 1,569 29 1,599 2 3 3Japan 134 0 134 11 146 147 0 147 8 8 1Rest of APJ 504 0 504 31 535 477 0 477 6 6 12

Total APJ 638 0 638 42 681 623 0 623 2 2 9Total revenue 4,151 2 4,153 157 4,310 4,062 29 4,091 2 2 5


* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurringrevenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted torecognize as revenue under IFRS as a result of business combination accounting rules.** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from theprevious year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparingthe current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.



For the six months ended June 30€ millions 2014 2013 Change in %


CurrencyImpact**

Non-IFRSConstant

Currency**


IFRS Non-IFRS*

Non-IFRSConstant

Currency**Cloud subscriptions and supportrevenue by region

EMEA 114 0 114 3 117 81 0 81 41 41 45Americas 307 2 309 16 325 186 54 241 65 29 35APJ 40 0 40 3 42 29 0 29 36 36 46

Cloud subscriptions and supportrevenue

460 2 463 22 485 296 54 350 55 32 38

Software and software-relatedservice revenue by region

EMEA 3,071 2 3,072 41 3,113 2,878 0 2,878 7 7 8Americas 2,471 3 2,474 140 2,614 2,355 64 2,419 5 2 8APJ 992 0 992 81 1,073 987 0 987 1 1 9

Software and software-relatedservice revenue

6,533 5 6,538 261 6,800 6,220 64 6,284 5 4 8

Total revenue by regionGermany 1,132 0 1,132 1 1,133 1,121 0 1,121 1 1 1Rest of EMEA 2,602 1 2,604 51 2,655 2,427 0 2,427 7 7 9

Total EMEA 3,734 2 3,736 51 3,787 3,547 0 3,547 5 5 7United States 2,225 3 2,228 98 2,326 2,123 64 2,187 5 2 6Rest of Americas 740 0 740 73 813 816 0 816 9 9 0

Total Americas 2,965 3 2,968 171 3,139 2,939 64 3,003 1 1 5Japan 264 0 264 30 294 299 0 299 12 12 2Rest of APJ 886 0 886 65 950 877 0 877 1 1 8

Total APJ 1,149 0 1,150 95 1,245 1,177 0 1,177 2 2 6Total revenue 7,849 5 7,854 318 8,172 7,663 64 7,727 2 2 6


MULTI-QUARTER SUMMARY(IFRS AND NON-IFRS)

€ millions, unless otherwise stated Q12013

Q22013

Q32013

Q42013

TY2013

Q12014

Q22014

Cloud subscriptions and support (IFRS) 137 159 191 208 696 219 241Revenue adjustment* 30 24 5 1 61 1 1

Cloud subscriptions and support (non-IFRS) 167 183 197 210 757 221 242

Software (IFRS) 657 982 975 1,902 4,516 623 957Revenue adjustment* 0 0 2 0 2 0 0

Software (non-IFRS) 657 982 977 1,903 4,518 623 957

Support (IFRS) 2,109 2,177 2,184 2,268 8,738 2,213 2,279Revenue adjustment* 4 5 5 5 19 2 1

Support (non-IFRS) 2,113 2,182 2,189 2,272 8,756 2,214 2,280

Software and support (IFRS) 2,765 3,159 3,159 4,170 13,254 2,836 3,237Revenue adjustment* 4 5 7 5 21 2 1

Software and support (non-IFRS) 2,770 3,164 3,166 4,175 13,275 2,838 3,238

Software and software-related service revenue(IFRS)

2,903 3,318 3,351 4,378 13,950 3,055 3,478

Revenue adjustment* 35 29 12 6 82 3 2Software and software-related service revenue(non-IFRS)

2,937 3,347 3,363 4,385 14,032 3,058 3,480

Consulting 557 580 553 553 2,242 508 520Other services 142 165 142 175 623 134 153

Professional services and other service revenue(IFRS = non-IFRS)

698 744 695 728 2,865 643 673

Total revenue (IFRS) 3,601 4,062 4,045 5,106 16,815 3,698 4,151Revenue adjustment* 35 29 12 6 82 3 2

Total revenue (non-IFRS) 3,636 4,091 4,057 5,113 16,897 3,701 4,153

Operating profit (IFRS) 646 988 1,043 1,802 4,479 723 698Revenue adjustment* 35 29 12 6 82 3 2

Expense adjustment* 222 168 242 290 921 193 536Operating profit (non-IFRS) 902 1,186 1,296 2,098 5,482 919 1,236

Operating margin (IFRS, in %) 17.9 24.3 25.8 35.3 26.6 19.5 16.8Operating margin (non-IFRS, in %) 24.8 29.0 32.0 41.0 32.4 24.8 29.8

Effective tax rate (IFRS, in %) 16.3 24.8 26.4 25.7 24.4 24.1 22.6Effective tax rate (non-IFRS, in %) 21.4 26.8 27.6 26.6 25.9 25.9 25.4

Earnings per share, basic (IFRS, in €) 0.44 0.61 0.64 1.11 2.79 0.45 0.47Earnings per share, basic (non-IFRS, in €) 0.58 0.71 0.78 1.28 3.35 0.56 0.79


€ millions, unless otherwise stated Q12013

Q22013

Q32013

Q42013

TY2013

Q12014

Q22014

Net cash flows from operating activities 2,162 320 558 792 3,832 2,352 223Purchases of intangible assets, and property, plant,and equipment

113 152 136 165 566 130 174

Free cash flow 2,049 168 422 627 3,266 2,222 49

Deferred cloud subscriptions and support revenue(IFRS, quarter end)

344 354 376 443 443 451 445

Revenue adjustment* 33 7 6 4 4 3 3Deferred cloud subscriptions and support revenue(non-IFRS, quarter end)

377 361 382 447 447 454 448

Days' sales outstanding (DSO, in days)** 61 62 62 62 62 63 64

Headcount (quarter end)*** 64,598 64,937 66,061 66,572 66,572 66,750 67,651

Employee retention (in %, rolling 12 months) 93.9 93.6 93.6 93.5 93.5 93.4 93.5Women in management (in %, quarter end) 21.4 21.4 21.0 21.2 21.2 20.9 21.1Greenhouse gas emissions (in kilotons) 145 145 135 120 545 125 140

* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurringrevenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted torecognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items arefor acquisition-related charges, share-based compensation expenses, restructuring expenses, discontinued activities, and the Versatalitigation.


** Days’ Sales Outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoicedaccounts receivables balance of the last 12 months by the average monthly sales of the last 12 months.

*** In full-time equivalents



ADDITIONAL INFORMATION

Financial Calendar

October 20, 2014Third-quarter earnings release, telephoneconference

January 21, 2015Fourth-quarter and full-year 2014 preliminaryearnings release, telephone conference

Investor ServicesAdditional information about this interim report isavailable online at www.sap.com/corporate-en/investors, including the official press release, apresentation about the quarterly results, and arecording of the conference call for financialanalysts.

The "Financial Reports" tab under “Financial Newsand Reports” contains the following publications:

- The 2013 Integrated Report(IFRS, www.sapintegratedreport.com)

- The 2013 Annual Report (IFRS, PDF)- The 2013 Annual Report 20-F (IFRS, PDF)- The 2013 SAP AG Statutory Financial

Statements and Review of Operations(HGB, German only, PDF)

- Interim reports (IFRS, PDF)- XBRL versions of the Annual and

Interim Reports

You can also read SAP’s annual and interim reportson an iPad. The free and interactive appPublications is now available in the App Store.

www.sap.com/corporate-en/investors is also theplace to look for in-depth information about stock,debt, and corporate governance; financial andevent news; and various services designed to helpinvestors find the information they need fast (see"Investor Services”). These include our free SAPINVESTOR magazine (www.sap-investor.com), ane-mail and text message news service, and aTwitter feed.

Print versions of the reports listed above can beordered by phone, e-mail, or online. The SAPIntegrated Report is only available online.

You can reach us by phone at +49 6227 7-67336,send a fax to +49 6227 7-40805, or e-mail us [email protected].

Addresses

SAP SEDietmar-Hopp-Allee 1669190 WalldorfGermanyTel. +49 6227 7-47474Fax +49 6227 7-57575Internet www.sap.comE-mail [email protected]

The addresses of all our international subsidiariesand sales partners are available on our public Website at www.sap.com/directory/main.html.

Information About Content:Investor Relations:Tel. +49 6227 7-67336Fax +49 6227 7-40805E-mail [email protected] @SAPinvestorInternet www.sap.com/investor

ImprintOverall Responsibility:

SAP SECorporate Financial ReportingPublished on July 17, 2014

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